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IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. SATHISH KUMAR, J
Sundaram Finance Limited – Appellant
Versus
D.Shanti – Respondent
ORDER :
Challenging the order of the Executing Court/X Assistant Judge, City Civil Court, Chennai, dated 28.06.2024, suo motu, dismissing the Execution Petition in in E.P.No.158 of 2024 in Arbitration Case No: SSP – SF – [MCCI] – 941 of 2022, the decree holder has come up with the present revision petition.
2. The revision petitioner is the claimant and the respondents are the respondents in the arbitration case in No: SSP – SF – [MCCI] – 941 of 2022 arose out of a dispute over a loan transaction. The revision petitioner, a financial institution, referred the matter to the sole arbitrator to adjudicate the dispute that arose between the respondents and themselves. The sole arbitrator passed an award on 30.08.2022 whereby the respondents were directed to pay a sum of Rs.15,49,012.26 paise jointly and severally to the revision petitioner together with interest @ 18% p.a. From 04.02.2022 till date of realization of the said amount in full and also to pay a sum of Rs.5000/- towards arbitrator's fee and a sum of Rs.500/- towards expenses incurred by the arbitrator. On the basis of the award, the revision petitioner initiated an execution proceedings to get executed the award which was tak
The executing court cannot dismiss an execution petition based on unilateral appointment of an arbitrator without a challenge from a party, and an arbitral award is enforceable unless set aside under....
Executing courts cannot annul arbitral awards based on unilateral appointment of arbitrators if the parties do not challenge it; such awards remain valid until set aside as per legal procedure.
The unilateral appointment of an arbitrator does not render an arbitral award a nullity unless formally challenged; such challenges are to be made under Section 34 of the Arbitration and Conciliation....
An arbitral award remains executable unless challenged under Section 34 of the Arbitration and Conciliation Act, 1996, even if the arbitrator was unilaterally appointed.
An arbitral award resulting from a unilaterally appointed Arbitrator is void for lack of inherent jurisdiction, allowing the executing court to refuse enforcement.
A unilateral appointment of an arbitrator by a party interested in the dispute is null and void under Section 12(5) of the Arbitration and Conciliation Act, 1996, as amended in 2015.
Unilateral appointment of a sole arbitrator violates equal treatment principles and renders the award void ab initio under the Arbitration and Conciliation Act, 1996.
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