Back
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SANDEEP V. MARNE
Jalaram Fabrics – Appellant
Versus
Nisarg Textiles Pvt. Ltd. – Respondent
Yes, the judgment generally supports the appointment of arbitrators by arbitral institutions. It emphasizes that such appointments, when made in accordance with the institution’s rules and procedures, are valid and legitimate. The judgment underscores that the role of the institution is to act as a neutral and independent appointing authority, ensuring transparency and fairness in the selection process (!) .
It also highlights that institutional appointments are consistent with the principles of arbitration, especially when the process adheres to the parties’ agreement and the institution’s established guidelines. The judgment affirms that these appointments do not constitute unilateral decisions by a single party but are instead made through an impartial process designed to uphold the integrity of the arbitration (!) .
Therefore, the judgment supports the view that appointments of arbitrators by institutions are valid and legitimate, provided they follow proper procedures and maintain neutrality and transparency (!) .
SANDEEP V. MARNE, J.
1) By this Petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act), the Petitioner has challenged the Award dated 21 July 2022 passed by the three Member Arbitral Tribunal of Bharat Merchants’ Chamber. By the impugned Award, the Arbitral Tribunal has directed the Petitioner to pay to the Respondent sum of Rs.11,44,850/- together with interest @ 18% p.a. on the principal amount of Rs.6,37,146/- till the date of the Award, totalling Rs.17,81,996/-. The Arbitral Tribunal has also granted post award interest @ 18% p.a. and costs of arbitration in favour of the Respondent.
2) Petitioner-Jalaram Fabrics is a proprietary concern engaged in the business of dealing with garments. Respondent is a private limited company registered under the Companies Act, 1956 and carries on business, inter alia of manufacture of fabrics including shirtings. Petitioner placed orders with the Respondent for supply of fabrics. Respondent supplied the goods to the Petitioner from time to time and various invoices were raised by the Respondent on the Petitioner. According to the Petitioner, during March 2019 to July 2019, it noticed issues in
An arbitration award cannot be invalidated for unilateral appointment of arbitrators if the parties had the opportunity to nominate their respective arbitrators through an independent institute, main....
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.
The court emphasized the necessity for impartiality in arbitration, ruling that automatic appointments of arbitrators undermined the arbitration clause, rendering the award invalid.
A party cannot challenge an arbitration award if it has unilaterally appointed the arbitrator, as such appointments violate principles of impartiality, making the award unenforceable.
The appointment of the arbitrator must adhere to the terms of the arbitration agreement, and challenges to the appointment must fall within the exhaustive grounds enumerated in Section 34(2) of the 1....
The appointment of the Sole Arbitrator by the MCCI was valid and did not contravene the Arbitration and Conciliation Act, 1996, even if one party did not participate in the arbitration proceedings.
Unilateral appointment of an arbitrator contravenes the arbitration agreement and violates principles of party autonomy, rendering the award void ab initio.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
