Supreme Court Raises Concern Over Misleading Arbitration Clauses in Contracts

The Supreme Court has strongly criticised the misuse of arbitration clauses in commercial contracts, urging courts to reject vague or misleading clauses at the outset.

Hearing appeals from Delhi High Court rulings, the Court noted that unclear arbitration terms often lead to years-long litigation over procedural issues.

The court stressed that a valid arbitration agreement must show clear and deliberate intent, and suggested that erring legal professionals may face personal liability in the future. 

The Court also urged judicial bodies to act suo motu against such malpractice. The matter will be heard next on July 11