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GURVINDER SINGH GILL
New India Assurance Co. Ltd. – Appellant
Versus
UHBVNL – Respondent
JUDGMENT
Mr. Gurvinder Singh Gill, J.
The instant civil revision under Article 227 of the Constitution of India has been preferred by the petitioner assailing the validity of the entire arbitration proceedings being carried out by the sole Arbitrator (respondent No. 2), appointed by respondent No. 1.
2. The petitioner - New India Assurance Company Limited had insured respondent No. 1 in respect of the stocks lying in their workshops in various districts including combustible articles like transformers, oils etc. by way of 'Fire Declaration Policy' (Annexure P-1), as per which respondent No. 1 was insured for the period 18.7.2014 to 17.7.2015 for a sum of Rs.21,54,00,000/-. A fire spread in one of the Warehouses on 3.5.2015 leading to damage of stocks including transformers etc. A Surveyor was appointed on the same day who conducted survey on 4.5.2015 at the insured premises and submitted his report assessing the loss on 22.3.2016 (Annexure P-2), as per which the loss was assessed as Rs. 28,62,476/-. However, as per respondent no. 1, the loss was to the tune of more than Rs. 1.57 crores.
3. A dispute having arisen, the Chairman-cum-Managing Director, UHBVNL appointed Shri K.L. Khatri,
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....
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 : It is not open for the petitioner to challenge the learned Arbitrator on the ground that there are justifiable doubts as to his independence and impartiality in terms of the Guidelines....
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....
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 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.
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