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J. B. PARDIWALA, R. MAHADEVAN
Hindustan Construction Company Ltd. Through Its Authorised Signatory Yogesh Dalal – Appellant
Versus
Bihar Rajya Pul Nirman Nigam Limited – Respondent
JUDGMENT
R. MAHADEVAN, J.
Leave granted.
2. This Appeal is directed against the final judgment and order dated 09.12.2024 passed by the High Court of Judicature at Patna [Hereinafter referred to as “the High Court”] in Request Case No. 53 of 2020, whereby the High Court dismissed the request case filed by the appellant, Hindustan Construction Company Limited, under Section 11 of the Arbitration and Conciliation Act, 1996 [For short, “the A&C Act”].
PREFACE
3. Arbitration is often a friend in conferences but a foe in practice. Its raison d’etre has always been to ease the burden on courts and to ensure the expeditious resolution of commercial disputes. Yet, this is not its only virtue. The true advantage of arbitration lies in its freedom and flexibility, with party autonomy as the cornerstone of the arbitral process.
3.1. Parties enjoy the liberty to determine the strength and composition of the tribunal, to appoint domain experts as arbitrators, and to design procedures suited to the nature and complexity of their disputes. This freedom allows them to bring to the table expertise and insight that even a judge may not be able to contribute.
3.2. However, parties often embrace arbitration
A valid arbitration agreement exists even if appointment procedures are unenforceable; courts should minimize intervention and uphold party autonomy in arbitration processes.
Participation in arbitration without objection constitutes a waiver of the right to challenge the appointment of the arbitrator, as per Sections 4 and 12 of the Arbitration and Conciliation Act.
Unilateral appointment of an arbitrator is void if it violates Section 12(5) of the Arbitration Act; mere participation does not imply waiver without express written consent post-disputes.
A unilateral appointment of an arbitrator by one party contravenes Section 12(5) of the Arbitration and Conciliation Act, rendering the arbitral award void ab initio and against public policy.
Appointment of arbitrator by designation is permissible.
Arbitration clauses in government contracts providing that an employee of the department will be the sole arbitrator are neither void nor ....
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