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HIGH COURT OF DELHI
JASMEET SINGH, J
ISAR ENGINEERS PRIVATE LTD. – Appellant
Versus
NTPC-SAIL POWER COMPANY LTD. – Respondent
| Table of Content |
|---|
| 1. challenge to arbitration award under section 34. (Para 1 , 2) |
| 2. petitioner's allegations of bias against the arbitrator. (Para 3 , 4) |
| 3. critique of the arbitration clause and its application. (Para 6 , 7) |
| 4. examination of the arbitrator's past roles and potential bias. (Para 11 , 12 , 15) |
| 5. refusal of successive arbitrary appointments based on procedural breaches. (Para 20 , 21 , 22) |
| 6. conclusion ruling in favor of the petitioner. (Para 33 , 34) |
JUDGMENT :
1. This is a petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the ex-parte Award passed by the learned Sole Arbitrator on 13.12.2017 (hereinafter referred to as the „Impugned Award‟) received by the petitioner on 15.12.2017.
Facts
a. The petitioner is a company incorporated under the Companies Act, 2013 engaged in execution of works contract. The respondent is a Digitally Signed joint venture of National Thermal Power Corporation and Steel Authority of India Ltd.
c. The petitioner submits that there was delay attributable to the respondent since amongst others delays, the work site was not handed over in time, drawings were provided late and the rate of additional quantities of wo
The court emphasized the necessity for impartiality in arbitration, ruling that automatic appointments of arbitrators undermined the arbitration clause, rendering the award invalid.
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.
Point of law: As per the legal position settled by the Supreme Court in catena of judgments, the High Court has the jurisdiction under Section 11(6) of the said Act to nullify the appointments made b....
Arbitrator independence is crucial; unilateral appointments violate neutrality, invalidating any waiver of ineligibility not expressly agreed post-constitution of the tribunal.
A party cannot challenge an arbitration award if it has unilaterally appointed the arbitrator, as such appointments violate principles of impartiality, making the award unenforceable.
Appointment of arbitrator by designation is permissible. Arbitration clauses in government contracts providing that an employee of the department will be the sole arbitrator are neither void nor unen....
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