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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
VIBHU BAKHRU, C.M.JOSHI
General Insurance Employees' Co-Operative Credit Society Ltd. – Appellant
Versus
Bharathi Hande, W/o. Sharath Kumar – Respondent
| Table of Content |
|---|
| 1. appeal filed under section 37 of the a&c act (Para 1 , 2) |
| 2. allegations of mismanagement and arbitration proceedings (Para 3 , 4 , 5) |
| 3. ineligibility of the sole arbitrator established (Para 6 , 7) |
| 4. legal consequences of arbitrator's ineligibility (Para 8 , 9) |
| 5. appeal dismissed confirming lower court's decision (Para 10 , 11) |
JUDGMENT :
VIBHU BAKHRU, C.J.
1. The appellant has filed the present appeal under Section 37 (1)(c) of the Arbitration and Conciliation Act, 1996 [A&C Act] impugning an order dated 20.03.2025 passed by the learned II Additional District and Sessions Judge, Udupi [Commercial Court] in A.P. No.12 of 2024. The respondent No.1 had filed the said petition under Section 34 of the A&C Act impugning an arbitral award dated 10.04.2024 [impugned award].
2. The learned Commercial Court had set aside the impugned award on the ground that the award was delivered by the arbitral tribunal comprising of the sole arbitrator who was ineligible under Section 12 (5) of the A&C Act.
3. The appellant is a multi state cooperative society governed under the Multi State Cooperative Societies Act, 2002 [MSCS Act]. The respondent No.1 was functioning as a Secretary of
The ineligibility of an arbitrator under Section 12(5) of the Arbitration and Conciliation Act invalidates the arbitral award, which can be challenged at any stage.
An arbitrator is ineligible to act if any relationship affecting impartiality exists, leading to a null and void award per Section 12(5) of the Arbitration and Conciliation Act.
Unilateral appointment of an arbitrator without concurrence violates Section 12(5) of the Arbitration and Conciliation Act, rendering the award void ab initio.
An arbitrator's unilateral appointment, without mutual consent, is invalid, making any resultant award unenforceable under Section 12(5) of the Arbitration and Conciliation Act, 1996.
An ineligible arbitrator appointed unilaterally violates Section 12(5) of the Arbitration and Conciliation Act, rendering the arbitral award invalid.
Parties can waive objections to an arbitrator's eligibility by consenting to their appointment and participating in proceedings, as per Sections 12(5) and 34 of the Arbitration and Conciliation Act.
Parties can waive objections to an arbitrator's ineligibility by express agreement after disputes arise, as per Section 12(5) of the Arbitration and Conciliation Act.
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