Doctrine of Party Autonomy

Doctrine of Party Autonomy Latest News

The Supreme Court recently held that the Doctrine of Party Autonomy is not limitless, and the same is the bedrock of arbitration.

About Doctrine of Party Autonomy

• The fundamental principle governing arbitration is party autonomy. 
• The freedom of the parties to choose the process of resolving disputes is known as party autonomy. 
• It confers on the parties the freedom to determine laws, place of arbitration, selection of arbitrators, etc.
• Almost all international arbitration laws, rules, and conventions recognize the principle of party autonomy. 
  • The concept is recognised under the New York Convention, the UNCITRAL Model Law, the Indian Arbitration and Conciliation Act, 1996, the International Chamber of Commerce (ICC) Arbitration Rules, etc.
• However, party autonomy is not unlimited, and it may be subject to certain legal or public policy constraints depending on the jurisdictions involved.
• The Supreme Court of India (SC), in the April 2021 judgment, ruled that “Party autonomy is the guiding spirit of arbitration”.
• The SC also held that such autonomy must be exercised on an equal footing, with both parties having a meaningful participation in the arbitrator appointment process.
• Any imbalance, where one party has disproportionate control, risks undermining the arbitrator’s independence and impartiality.

Source: VERD

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