Case Law Analysis
|Punjab and Haryana High Court
Section 12(5) Arbitration Act | Managing Director of State Utility Disqualified as Contractual Arbitrator Appointing Authority Due to Conflict of Interest : Punjab & Haryana HC
The Punjab & Haryana High Court held that a state electricity utility’s Managing Director cannot appoint an arbitrator under a contractual clause when the dispute involves the utility’s own contractual obligations, as this creates an inherent conflict of interest under Section 12(5) of the Arbitration Act. This ruling reinforces the independence requirement for arbitrator appointments in public utility contracts and protects parties from biased appointment mechanisms.