Topic
Delhi High Court held that a sole arbitrator appointed solely by one party breaches Section 12(5) of the Arbitration Act, rendering the award void. It cautions that contract clauses permitting unilateral appointments are ineffective without a written waiver, impacting commercial arbitrations.
A Delhi High Court set aside a 2022 award, declaring it a nullity because the sole arbitrator had been appointed solely by one party without an express written waiver of the ineligibility bar under Section 12(5) of the Arbitration Act. The ruling makes clear that any such unilateral appointment invalidates the award, affecting parties relying on sole arbitrator clauses.
Bombay High Court reaffirms that unilateral arbitrator appointments under Section 12(5) of the Arbitration and Conciliation Act, 1996, are void ab initio, setting aside over 250 arbitral awards. The court excluded the period from arbitration invocation to the judgment date for limitation purposes, allowing parties to initiate fresh proceedings.
The Punjab & Haryana High Court affirmed that contractual designation of an arbitrator does not override statutory disqualification under Section 12(5) when the appointing authority has institutional bias. This reinforces that impartiality in arbitration is non-negotiable, and courts must step in to ensure fair proceedings even when parties have pre-agreed appointment mechanisms.