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IN THE HIGH COURT OF DELHI AT NEW DELHI
JASMEET SINGH
Daulat Ram Brake Mfg Co – Appellant
Versus
Union Of India (Through Ministry Of Railways) For Northern Railways (NR) – Respondent
JUDGMENT :
JASMEET SINGH, J.
1. This is a petition filed by M/s Daulat Ram Brake Manufacturing Co. (petitioner) under Section 34 of the Arbitration and Conciliation, Act, 1996 (“1996 Act”) seeking to challenge the Arbitral Award dated 16.11.2023 (“Impugned Award”), whereby the counter claims of the respondent No. 1 were allowed and the petitioner was directed to pay an amount of Rs. 1,37,53,824/- to the respondent No. 1 within 90 days from the date of the award, failing which the awarded amount would carry a simple interest of 10% till the date of the actual payment.
2. By way of the present petition, the petitioner also seeks appointment of a fresh Arbitral Tribunal consisting of three independent arbitrators eligible under Section 12 and the Seventh Schedule of the 1996 Act.
FACTUAL MATRIX AS PER THE PETITIONER
3. The Petitioner, M/s Daulat Ram Brake Manufacturing Co., is a proprietorship firm engaged in the business of manufacturing brake blocks used in passenger coaches.
4. Respondent No.1 is Union of India for Northern Railways (NR) represented through Dy. Chief Manager/Sig/NR, Baroda House, Northern Railway, New Delhi, 110001. Respondent No. 2 is the General Manager (Northern Rail
Arbitrator independence is crucial; unilateral appointments violate neutrality, invalidating any waiver of ineligibility not expressly agreed post-constitution of the tribunal.
The court emphasized the necessity for impartiality in arbitration, ruling that automatic appointments of arbitrators undermined the arbitration clause, rendering the award invalid.
An employee of the respondent or even a retired employee would be ineligible to be appointed as an arbitrator. The panel of arbitrators should be broad-based and should include persons with diverse b....
Point of law: Arbitration -in the absence of an express agreement between the petitioner and the respondent subsequent to arising of disputes whereby the parties expressly agreed to waive the applica....
The appointment of an arbitrator must comply with the Arbitration and Conciliation Act, particularly Section 12(5), which disqualifies certain individuals from serving as arbitrators.
A unilateral appointment of an arbitrator from an ineligible party is void ab initio without an express written waiver of Section 12(5) of the Arbitration and Conciliation Act, which cannot be implie....
An arbitrator's appointment violating Section 12(5) of the Arbitration Act without an express written waiver is invalid, rendering any adjudicated award void.
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