Back
PRATEEK JALAN
Bridge Building Construction Co Pvt Ltd – Appellant
Versus
Bharat Heavy Electricals Ltd. – Respondent
JUDGMENT :
PRATEEK JALAN, J.
1. By way of these petitions under Section 34 of the Arbitration and Conciliation Act, 1996 [“the Act”], the petitioner assails two arbitral awards between the parties rendered by the same arbitrator, albeit under different contract agreements. In O.M.P. (COMM) 87/2022, the impugned award was made on 23.01.2021 and arose out of a Contract Agreement dated 09.02.2016 (pursuant to Letter of Intent dated 27.11.2014 and Work Order dated 23.04.2015). In O.M.P. (COMM) 377/2022, the impugned award was made on 18.08.2021[At the foot of the award, the date mentioned is 20.08.2021.] and arose out of a Contract Agreement dated 09.02.2016 (pursuant to the Letter of Intent dated 27.11.2014 and Work Order dated 10.07.2015).
2. Both agreements contain identical arbitration clauses (Clause 26), which provide for resolution of disputes by sole arbitration of the Head of the Transmission Business Group (TBG) of the respondent or his appointee. The undisputed factual position is that the petitioner sought invocation of arbitration by communications addressed to the respondent, and the respondent appointed the arbitrator who has rendered the impugned awards.
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.
An award rendered by an ineligible arbitrator is void ab-initio, and the appointment of an arbitrator by an ineligible person goes to the root of the arbitrator's jurisdiction.
The main legal point established in the judgment is that the appointment of the sole arbitrator unilaterally by one of the parties was improper and impermissible, violating the provisions of Section ....
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
