J.B.KOSHY, K.HEMA
Impex Corporation – Appellant
Versus
Elenjikal Aquamarine Exports Ltd. – Respondent
KOSHY, J. :- Main question to be decided in this case is the application of principles of natural justice and fair hearings in Arbitration proceedings. Appellant filed an application to set aside the award passed by the Arbitrator under Section 34 of the Arbitration and Conciliation Act. 1996 (herein referred to as the ·Act'). Various contentions were raised by the appellant. First contention was that there was no proper arbitration agreement. Second contention was that the arbitrator was not properly appointed and appellant never agreed for the arbitration or arbitrator. Thirdly it was argued that former junior of the arbitrator was appearing for the claimants and therefore there are circumstances to doubt the impartiality of the arbitrator as provided under S. 12(3) of the Act. Finally it was contended that arbitrator decided the matter ex parte and award was passed without issuing proper notice and hence there is violation of the principles of natural justice. The District Court found all these points against the appellant in the impugned order.
2. Section 7 of the Act mandates that there should be an agreement by the parties to submit to arbitration. Section 7(2) provi
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