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DELHI HIGH COURT
MANOJ KUMAR OHRI
Bharat Foundry and Engineering Works – Appellant
Versus
Intec Capital Limted – Respondent
| Table of Content |
|---|
| 1. appellants challenge arbitral awards (Para 1 , 2 , 3 , 4 , 5 , 6 , 7) |
| 2. mandatory disclosure obligations of arbitrators (Para 8 , 9 , 10 , 11 , 13) |
| 3. independence and impartiality of arbitrators (Para 12 , 14 , 15 , 16 , 17) |
| 4. implications of ex-parte arbitration decisions (Para 18 , 19 , 20 , 21 , 22) |
| 5. threshold for challenging arbitrators' eligibility (Para 23 , 24 , 25) |
| 6. affirmation of lower court's decision (Para 26) |
JUDGMENT
Manoj Kumar Ohri, J. By way of the present appeals filed under Section 37 of the Arbitration & Conciliation Act, 1996 (hereinafter, referred to as `the Act'), the appellants have assailed the common order dated 18.08.2020 passed by learned ADJ-03, South-East, Saket Courts, New Delhi in Arbitration Petition Nos. 78/2018 and 79/2018, whereby appellant's objections under Section 34 to the two Arbitral awards dated 23.06.2016 were dismissed.
2. Facts necessary for the disposal of the present appeals are as following. Respondent No.1/claimant, a non-banking financial company, made a claim against the appellants in respect of two loans of Rs.75,00,000/- and Rs.1,07,14,000/- granted to them, principal borrower/guarantor. A sole arbitrator wa
The appeals were dismissed due to lack of evidence demonstrating the arbitrator's bias, emphasizing that mere allegations of disclosure failures do not invalidate ex-parte awards without clear proof ....
The court held that failure to disclose prior relationships with a party renders an arbitrator ineligible, thus invalidating the arbitral award under the Arbitration and Conciliation Act.
The mandatory notice under Section 21 for arbitration commencement must be received, not just sent, and failure to disclose connections violates Section 12, compromising arbitration impartiality.
Participation in arbitration without objection constitutes a waiver of the right to challenge the appointment of the arbitrator, as per Sections 4 and 12 of the Arbitration and Conciliation Act.
The main legal point established in the judgment is that the provisions of the Arbitration and Conciliation Act, 1996, including the disclosure requirements, apply to arbitration proceedings under sp....
The Court cannot intervene in arbitration proceedings unless a de jure inability of the arbitrator is established, as per the Arbitration and Conciliation Act, 1996.
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