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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SOMASEKHAR SUNDARESAN
Satnam Singh Ahuja – Appellant
Versus
Karvy Financial Services Ltd. – Respondent
| Table of Content |
|---|
| 1. unilateral appointment renders arbitrator ineligible under section 12(5). (Para 1 , 2 , 3 , 4 , 5) |
| 2. participation does not waive ineligibility absent express consent. (Para 6 , 7 , 8) |
| 3. bhadra international addresses waiver and de jure ineligibility issues. (Para 9 , 10 , 11 , 12) |
| 4. waiver requires express written agreement, not implied conduct. (Para 13) |
| 5. no need to challenge arbitrator during proceedings for section 34. (Para 14 , 15) |
| 6. unilateral appointment vitiates award; conduct does not cure. (Para 16 , 17 , 18 , 19 , 20) |
| 7. petitions allowed; impugned awards set aside. (Para 21 , 22) |
JUDGMENT:
Somasekhar Sundaresan, J.
Context and Factual Background:
1. The captioned proceedings are all under Section 34 of the Arbitration and Conciliation Act, 1996 (“the Act”), with the Arbitral Awards having been passed by an Arbitrator, unilaterally appointed by the Respondent, Karvy Financial Services Ltd. (“Karvy”). Although the Learned Arbitral Tribunal was admittedly unilaterally appointed, the Petitioners had not protested against such unilateral appointment throughout the proceedings, and raised the contention only at the stage of these proceedings under Section 34 o
Unilateral arbitrator appointment causes de jure ineligibility under Section 12(5); participation without objection does not waive rights, requiring express written agreement; challenge valid under S....
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.
Unilateral appointment of an arbitrator contravenes the arbitration agreement and violates principles of party autonomy, rendering the award void ab initio.
An arbitrator's appointment violating Section 12(5) of the Arbitration Act without an express written waiver is invalid, rendering any adjudicated award void.
Arbitral award will be vitiated where appointment of Sole Arbitrator is unilateral.
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