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Court Decision
2024-09-14
Subject: Commercial Law - Arbitration
In a significant ruling, the Bombay High Court addressed a dispute between Global Zone Sanitory Infrastructure Pvt. Ltd. and Advent
Petitioner's Position:
Global Zone argued that the arbitration agreement allowed for a sole arbitrator, especially since Advent
Respondent's Position:
Advent
The court analyzed the timeline of events, noting that Advent
The judge concluded that Advent's written commitment to arbitrate with a court-appointed sole arbitrator remained valid and unrevoked, thus justifying the appointment of the sole arbitrator.
The Bombay High Court upheld the appointment of the sole arbitrator, rejecting Advent
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A party that frustrates arbitration forfeits its right to appoint an arbitrator, and written commitments to arbitration must be honored unless revoked.
Unilateral appointment of a sole arbitrator violates equal treatment principles and renders the award void ab initio under the Arbitration and Conciliation Act, 1996.
Unilateral appointment of arbitrator and ex parte arbitration proceedings are void and can be ignored. Appointment of arbitrator must be based on consensus between the parties or by the court under S....
Failure to act at first instance obviates any necessity of any of parties to agreement from again starting process from very beginning.
The arbitration request was timely, and the contract termination was illegal; hence, an arbitrator was appointed to resolve disputes.
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