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One Sided or Unilateral Arbitration

XYZ is a contractor for Industrial sheds and huge infrastructure projects. One of the Leading Civil contractor ABC wanted XYZ to execute a portion of their contract and the contact value was about INR 62 crores (15 Million USD). ABC and XYZ signed a contract with a clear arbitration clause. But while issuing the work orders ABC incorporated a one-sided arbitration clause. When XYZ raised this matter ABC refused to accept to change the work order on the ground that the arbitration clause in the work order is a part of their standard format. XYZ also felt that the main contract provides for a neutral arbitration clause and hence even if they accept the work order as it is, it will not affect their rights in case of disputes. But we advised them not to accept the work order with a different arbitration clause because in case matter goes to Court, work order being a later document accepted by both the parties will be considered as a modification to the earlier contract. Hence XYZ insisted ABC to change the work order which was later accepted by ABC. Recently some disputes arising out of the same contract is referred to an Arbitrator appointed by the Court. Hence while accepting or signing any document, the legal implications also required to be looked into.