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AJAY MOHAN GOEL
Hem Raj, LSM – Appellant
Versus
Divisional Manager, Forest Working Division, Shimla – Respondent
JUDGMENT :
Ajay Mohan Goel, J.
By way of this appeal filed under Section 37(1)(C) of the Arbitration and Conciliation Act, 1996, the appellant assails the judgment passed by learned District Judge, Shimla, in Arbitration Case No. 17-S/2 of 2021, titled as Hem Raj vs. The Divisional Manager, dated 16.05.2023, as also the award passed by the learned Arbitrator in the matter of dispute of Lot No. 13/2010 (Mashobra)-Resin Extraction, FWD, Shimla (Shortfall recovery an amount of Rs. Rs. 6,38,400/-).
2. Brief facts necessary for the adjudication of the present appeal are that a claim was filed by the Divisional Manager against the appellant in the matter of dispute of Lot No. 13/2010 (supra) which was allowed by the Arbitrator- cum-Executive Director, Himachal Pradesh State Forest Development Corporation, Shimla, vide award dated 17.01.2020, by awarding an amount of Rs.6,38,400/- on account of shortfall in resin alongwith 9% from the date of institution of the case till its realization.
3. The objections filed by the appellant under Section 34 of the Arbitration and Conciliation Act, 1996, against the award passed by learned Arbitrator, were dismissed by the Court of learned District Judge,
The main legal point established in the judgment is the ineligibility of an arbitrator based on the amended provision in Section 12(5) of the Arbitration and Conciliation Act, 1996, and the voidness ....
The main legal point established in the judgment is the de jure ineligibility of the learned Sole Arbitrator to act as an Arbitrator in view of Section 12(5) of the Arbitration and Conciliation Act, ....
The court established that under the amended Arbitration and Conciliation Act, 1996, an arbitrator must be independent and impartial, and parties cannot appoint an arbitrator if the appointing author....
An arbitrator's unilateral appointment, without mutual consent, is invalid, making any resultant award unenforceable under Section 12(5) of the Arbitration and Conciliation Act, 1996.
The unilateral appointment of an arbitrator without engaging the other party and the applicability of statutory provisions and legal precedents in determining the legitimacy of the appointment.
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.
Once person who was required to arbitrate upon disputes arisen under terms and conditions of contract becomes ineligible by operation of law, he would not be eligible to nominate a person as an arbit....
Previous judicial involvement does not disqualify an arbitrator under the Arbitration and Conciliation Act, as long as independence and impartiality are maintained.
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