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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SOMASEKHAR SUNDARESAN
Satnam Singh Ahuja – Appellant
Versus
Karvy Financial Services Ltd. – Respondent
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 of the Act.
2. The implications of such conduct of the Petitioners, and whether the Petitioners are deemed to have waived their entitlement to object to the unilateral appointment, is what falls for consideration in these Petitions.
3. The Learned Advocates for the parties submit that adjudication of Arbitration Petition No. 324 of 2019 would be dispositive of all the captioned Petitions. Therefore, the facts are taken from Arbitration Petition No. 324 of 2019. In that Petition, the underlying transactions involved a loan amount of Rs.~1.22 crore, computed as of December 26, 2015, being the debt due along with fur
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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