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VIBHU BAKHRU, AMIT MAHAJAN
Govind Singh – Appellant
Versus
Satya Group Pvt. Ltd. – Respondent
| Table of Content |
|---|
| 1. validity of the arbitration process (Para 1 , 2 , 3 , 4 , 5 , 6) |
| 2. question of the arbitrator's eligibility (Para 7 , 8 , 9 , 10) |
| 3. case law on arbitrator's ineligibility (Para 14 , 15 , 16 , 17) |
| 4. ineligibility affects jurisdiction of the award (Para 18 , 19 , 20 , 21 , 22 , 23) |
| 5. impugned award set aside for jurisdiction issues (Para 24) |
| 6. parties can re-agitate claims in new tribunal (Para 25) |
JUDGMENT
Vibhu Bakhru, J. The appellant, Mr. Govind Singh, has filed the present appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (hereafter `the A&C Act') impugning an order dated 07.12.2021 (hereafter `the impugned order') passed by the learned Commercial Court, whereby the appellant's application under Section 34 of the A&C Act [being ARBTN No. 16 of 2019], seeking to set aside an arbitral award dated 17.01.2019 (hereafter `the impugned award'), was rejected.
Factual Context
2. In the month of January 2014, the appellant had received a message from a broker regarding the availability of a property for sale. Thereafter, on 03.02.2014, the appellant gave a cheque for an amount of Rs.50,000 to Mr. Ankush Chawla and Mr. Manish Chawla (brokers) to boo
An ineligible arbitrator appointed unilaterally violates Section 12(5) of the Arbitration and Conciliation Act, rendering the arbitral award invalid.
The court established that an arbitrator appointed by an ineligible individual cannot act, and waivers of objections regarding ineligibility must be expressed in writing, not inferred by conduct.
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.
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.
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.
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 ....
Point of Law : It is not open for the petitioner to challenge the learned Arbitrator on the ground that there are justifiable doubts as to his independence and impartiality in terms of the Guidelines....
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