UNILATERAL APPOINTMENT OF ARBITRATORS

The recent Supreme Court Constitution Bench ruling from November 2024 on the appointment of a sole arbitrator is an important clarification in Indian arbitration law. It particularly addresses issues of party autonomy, fair treatment, and arbitrator independence. This much-anticipated decision reviews and combines several earlier rulings, aiming to resolve whether a party to an arbitration agreement—especially one with a vested interest—can unilaterally appoint a sole arbitrator or limit the other party’s choices through a selected panel.

Ad Hoc Arbitration

International arbitration has become a cornerstone of cross-border dispute resolution, offering a neutral and efficient alternative to litigation. Within this framework, ad hoc arbitration stands out for its flexibility and autonomy. Unlike institutional arbitration—conducted under the supervision of bodies such as the International Chamber of Commerce (ICC) or the London Court of International Arbitration (LCIA)—ad hoc arbitration allows parties to determine procedural rules, select arbitrators, and structure proceedings without institutional oversight. While this independence has clear advantages, it also presents significant challenges regarding enforcement, efficiency, and procedural certainty.

Clean state theory “Section 32A and Corporate Immunity”

The most controversial provision of India’s corporate insolvency legislation is Section 32A of the Insolvency and Bankruptcy Code (IBC), 2016. It has largely been in the limelight since it discusses granting protection to companies against being prosecuted for crimes committed prior to the initiation of the insolvency process. The concept is that when a new management comes in and a revival plan is sanctioned by the National Company Law Tribunal (NCLT), the company is supposed to have a “clean slate” so that it may begin anew. But this protection has put numerous questions with regards to how to balance the need for company revival with the need for accountability for historic crimes.

Group Insolvency under the IBC (Amendment) Bill, 2025: Opportunities and Challenges

The Insolvency and Bankruptcy Code (Amendment) Bill, 2025, is designed to strengthen India’s insolvency framework by formally addressing the complexities of corporate groups. It fills a critical gap exposed when several related firms collapsed together but had to undergo isolated insolvency proceedings. The Bill enables the government to frame rules for joint hearings, shared professionals, and consolidated creditor committees—seeking greater efficiency while ensuring creditors’ interests remain protected.

Generative AI and Legal Privilege in Drafting

The growing application of generative AI has sent jitters and raised questions across most areas, and one significant one is law. Of the legal principles impacted, two are distinctly evident: legal privilege and the discovery process. Generative AI is technologies used to generate new content, data, or even make decisions based on learned patterns from vast amounts of information. Individuals are employing AI in order to prepare documents, generate reports, and even make recommendations that mimic expert advice. While these machines are quick and efficient, they also generate uncertainty regarding whether AI generated material can be covered by legal privilege and how it should be included in a case’s discovery process.

RWAs and Their Role in Real Estate Insolvency under the IBC

The Insolvency and Bankruptcy Code (IBC) was introduced in 2016 which primarily aims at the resolution of corporate insolvency of corporate persons, partnership firms and individuals. The IBC framework is intended to facilitate the financially distressed corporate debtor and not as a mere recovery mechanism for creditors. Accordingly, proceedings before the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) are resolution centred and not recovery centred.