Severability in arbitration clauses allows enforcement of a valid promise to arbitrate despite an invalid finality and waiver stipulation.

An arbitration clause remained enforceable despite a separate stipulation making the arbitrator's determination final and barring objections, because the invalid portion was clearly severable from the rest of the agreement. Applying severability and the blue pencil test, the Court treated the referable promise to arbitrate, the UNCITRAL framework, and the ancillary terms on seat, language, and costs as independent from the objectionable finality-and-waiver language. It held that a contract is not unenforceable merely because one part is invalid where the lawful part preserves the substance of the bargain and can stand alone. The express severability clause further supported enforcing the surviving arbitration promise and appointing an arbitrator.

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Issues: Whether the arbitration clause was enforceable despite the stipulation making the arbitrator's determination final and binding and barring appeal or objection, and whether the severable valid part of the clause could be enforced to appoint an arbitrator.

Analysis: The arbitration clause consisted of distinct parts: a referable dispute-resolution agreement under UNCITRAL rules, the seat and language of arbitration, cost-sharing, and a separate stipulation making the award final and waiving objections. The latter stipulation was held to be legally objectionable, but the Court found it to be clearly severable from the rest of the clause. Applying the doctrine of severability and the blue pencil test, the Court held that a contract is not rendered unenforceable merely because one part is invalid, so long as the lawful part is independent, preserves the substance of the bargain, and can stand on its own. The agreement's express severability clause further supported enforcement of the valid part.

Conclusion: The arbitration agreement was held enforceable to the extent of the referable arbitration promise, and the objectionable finality and waiver stipulation did not defeat the clause.

Final Conclusion: The petition succeeded and an arbitrator was directed to be appointed on the basis of the surviving valid portion of the arbitration agreement.

Ratio Decidendi: Where an arbitration clause contains a separable invalid stipulation, the court may enforce the remaining valid promise to arbitrate if the substance of the agreement survives and the invalid part can be severed without rewriting the contract.

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