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NAJMI WAZIRI, SUDHIR KUMAR JAIN
Citicorp Finance India Ltd. – Appellant
Versus
Rajesh Jain – Respondent
Najmi Waziri, J.(Oral)
The hearing has been conducted through hybrid mode (physical and virtual hearing).
1. This appeal impugns the order of the learned District Judge (Commercial), Central District, Tis Hazari Courts, Delhi dated 18.09.2021 in OMP (COMM.) No. 95 of 2020 which has set aside the Sole Arbitrator's award dated 22.11.2019 in respondent's petition under section 34 of Arbitration & Conciliation Act, 1996 (`The Act'), on the ground that it was rendered by an Arbitrator who was not appointed with the respondent's consent. Reliance was placed on the dicta of the Supreme Court in Perkins Eastman Architects DPC & Anr. V. HSCC (India) Ltd., (2020)20 SCC 760, which was rendered on 26.11.2019.
2. Mr. Inderbir Singh Alag, learned Senior Advocate appearing on behalf of the appellant submits that: i) no arguments were raised apropos the constitution of the Arbitral Tribunal till the arbitral proceedings were concluded; ii) the award had already been pronounced on 22.11.2019, so the rationale and benefit of Perkins Eastman (supra) was not available before the learned Sole Arbitrator; iii) the issue of the constitution of the Arbitral Tribunal was never pressed substantially nor pu
Unilateral appointment of an Arbitrator by one party cannot be sustained, and any award or order purporting to cast a liability on the objecting party would be non-est.
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 ....
Unilateral appointment of an arbitrator is void if it violates Section 12(5) of the Arbitration Act; mere participation does not imply waiver without express written consent post-disputes.
The main legal point established in the judgment is the de jure ineligibility of the learned Sole Arbitrator to act as an Arbitrator in view of Section 12(5) of the Arbitration and Conciliation Act, ....
Unilateral appointment of an arbitrator without proper notice and in violation of statutory provisions renders the resulting award unsustainable and against the public policy of India.
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