{"id":250101,"date":"2021-06-21T18:15:43","date_gmt":"2021-06-21T12:45:43","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=250101"},"modified":"2021-06-25T12:01:43","modified_gmt":"2021-06-25T06:31:43","slug":"appointment-of-arbitrator","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/21\/appointment-of-arbitrator\/","title":{"rendered":"Del HC | Can sole arbitrator’s appointment be disputed if he was consultant\/advisor to one of the parties to dispute? Court examines"},"content":{"rendered":"

Delhi High Court: <\/strong>J.R. Midha, J., in view of serious doubts on the independence of sole arbitrator as named in the arbitration agreement, appointed another independent arbitrator.<\/p>\n

Petitioner sought appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act.<\/p>\n

Parties had agreed for reference of disputes to the sole arbitrator, Sachin Dev Sharma, Chartered Accountant as per the arbitration agreement between them.<\/p>\n

Petitioners Counsel submitted that the sole arbitrator was not competent to act as an arbitrator in terms of Section 12(5) read with 7th Schedule of the Arbitration and Conciliation Act as the named arbitrator was a consultant\/advisor to the respondent and a director and shareholder in PEB Steel Lloyd (India) Ltd.<\/p>\n

This Court vide an Order in March had directed the arbitrator to file an affidavit with respect to his relationship between the parties in terms of the Seventh Schedule under Section 12(5) of the Arbitration and Conciliation Act, wherein he admitted that he was an independent director in PEB Steel Lloyd (India) Ltd. in which respondent 1 was also a director.<\/p>\n

Further, respondent 1 submitted that the petitioner had agreed to the named arbitrator cannot wriggle out of the arbitration agreement.<\/p>\n

High Court in view of the above submissions, held that it had serious doubt to the independence of named arbitrator and hence in the interest of justice it would be appropriate to appoint an independent arbitrator to adjudicate disputes between the parties.<\/p>\n

Saurabh Kirpal, Senior Advocate was appointed as the sole arbitrator and was directed to ensure compliance with Section 12 of the Arbitration and Conciliation Act before commencing the arbitration. [Monica Khanna v. Mohit Khanna, 2021 SCC OnLine Del 3421<\/b><\/a>, decided on 18-06-2021]<\/p>\n

\n

Advocates before the Court:<\/strong><\/p>\n

For the Petitioners: Abhay Mahajan, Advocate<\/p>\n

For the Respondents: Amit Mishra, Advocate<\/p>\n","protected":false},"excerpt":{"rendered":"

Delhi High Court: J.R. Midha, J., in view of serious doubts on the independence of sole arbitrator as named in the arbitration <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1192,3,10],"tags":[6111,10111,17711,46294,45834,2543,30184,29785,42834,31135],"class_list":["post-250101","post","type-post","status-publish","format-standard","hentry","category-alternate_dispute_resolution","category-casebriefs","category-highcourts","tag-appointment","tag-arbitration-agreement","tag-arbitrator","tag-ca","tag-chartered-accountant","tag-Delhi_High_Court","tag-dispute","tag-law","tag-legal-news","tag-sole-arbitrator"],"yoast_head":"\nDel HC | Can sole arbitrator's appointment be disputed if he was consultant\/advisor to one of the parties to dispute? 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Saraf, J., held that merely because an arbitration clause provides for an illegal method of appointment of arbitrator, it does not come to an end and after removing the illegal portion\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Calcutta High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":254584,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/09\/23\/arbitration-and-conciliation-act-3\/","url_meta":{"origin":250101,"position":1},"title":"Chairman of party who entered into arbitration, can he be categorised as eligible under Arbitration and Conciliation Act? 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Shah and Aniruddha Bose, JJ., held that, Though the word 'Chairman' is not mentioned explicitly in Seventh Schedule, at the same time, it would fall under clause 1, clause 2, clause 5, and\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":278787,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/11\/30\/jharkhand-high-court-legal-research-legal-update-arbitration-conciliation-act-1996-section-116-section-152-section-21\/","url_meta":{"origin":250101,"position":2},"title":"Jharkhand High Court | Maintainability of application under S. 11(6), Arbitration and Conciliation Act, 1996 for appointment of substitute arbitrator","author":"Editor","date":"November 30, 2022","format":false,"excerpt":"\u00a0 \u00a0 Jharkhand High Court: While allowing the application under Section 11(6), Arbitration and Conciliation Act, 1996 (Arbitration Act) for appointment of substitute arbitrator, a single judge bench of Sujit Narayan Prasad, J. held that since first arbitrator was appointed under Section 11(6) of the Arbitration Act after the applicant\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Jharkhand High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image38-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":294793,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/06\/16\/delhi-hc-sets-aside-arbitral-award-by-arbitrator-de-jure-inability-legal-updates\/","url_meta":{"origin":250101,"position":3},"title":"Delhi High Court sets aside arbitral award passed by Arbitrator having de jure inability to pass the award","author":"Arunima","date":"June 16, 2023","format":false,"excerpt":"The ineligibility of an Arbitrator goes to the root of his jurisdiction and the Arbitral Award cannot be considered as valid.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"delhi high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":252455,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/09\/appointment-of-arbitrator-2\/","url_meta":{"origin":250101,"position":4},"title":"Del HC | Can a party unilaterally appoint an Arbitrator of their choice? 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Crux of the petitions is to seek the appointment of Arbitrators for adjudication of disputes\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":253237,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/26\/arbitration-act\/","url_meta":{"origin":250101,"position":5},"title":"Ker HC | Syllogistic scope of Ss. 11(5) and 11(6) of the Arbitration Act, 1996; HC unclouds the line","author":"Editor","date":"August 26, 2021","format":false,"excerpt":"Kerala High Court: Devan Ramachandran, J., held that parties to arbitration cannot nominate the arbitrator even if the Arbitration Agreement provides so. 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