{"id":290473,"date":"2023-04-25T09:00:25","date_gmt":"2023-04-25T03:30:25","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=290473"},"modified":"2023-04-24T18:27:17","modified_gmt":"2023-04-24T12:57:17","slug":"dispute-arbitration-unilaterally-appointment-sole-arbitrator-arbitral-award-execution-calcutta-high-court-application-dismissed","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2023\/04\/25\/dispute-arbitration-unilaterally-appointment-sole-arbitrator-arbitral-award-execution-calcutta-high-court-application-dismissed\/","title":{"rendered":"Arbitral award itself stands vitiated, if passed by unilaterally appointed arbitrator(s): Calcutta High Court"},"content":{"rendered":"
\n

Calcutta High Court<\/b> | While dismissing the application seeking execution of an arbitral award, Shekhar B. Saraf<\/b>*, J., held that the said award itself stands vitiated as the same is passed by a unilaterally appointed arbitrator, thus lacking inherent jurisdiction to adjudicate disputes between the parties.<\/p>\n

In the instant matter, a dispute arose between the petitioner-award holder and respondent-award debtor, after the respondent failed to pay either the due amount or make over the possession of the assets as per Master Lease Agreement (the agreement) entered on 15-07-2018. By virtue of the said agreement, an amount of INR 87,83,410\/- was advanced by the petitioner to the respondent to hire on lease assets in the form of two vehicles along with their necessary accessories by the respondent. On 24-01-2020, the petitioner invoked arbitration and unilaterally appointed Mr. Samrat Mukherjee as the Sole Arbitrator as per arbitration clause contained in the agreement. The Sole Arbitrator passed an ex-parte arbitral award dated 27-08-2021 directing the respondent to pay a sum of INR 65,41,583.12\/- to the petitioner. The petitioner filed an application under S. 36<\/a> of the Arbitration & Conciliation Act, 1996<\/a> seeking the execution of duly passed arbitral award.<\/p>\n

Relying on Cholamandalam Investment and Finance Company Ltd.<\/i> v. Amrapali Enterprises<\/i>, 2023 SCC OnLine Cal 605<\/a>, the Court observed that an “arbitral award passed by unilaterally appointed arbitrators do not carry the privilege of existence before the eyes of law and should be regarded as a nullity.”<\/b><\/p>\n

The Court observed that an arbitrator lacks inherent jurisdiction to adjudicate disputes between the parties, if he\/she is appointed unilaterally by one party only and as a result both the arbitral proceedings and the award itself stand vitiated.<\/p>\n

Hence, the Court dismissed the present application and provided liberty to the parties to re-agitate their claims\/counterclaims in properly constituted arbitration proceedings.<\/p>\n

[Srei Equipment Finance Ltd. v. Sadhan Mandal, 2023 SCC OnLine Cal 831<\/a>, decided on 11-04-2023<\/span>]<\/p>\n

*Judgment by Justice Shekhar B. Saraf<\/span><\/strong><\/p>\n\n

Advocates who appeared in this case :<\/p>\n

Mr. Anik Banerjee, Mr. Rajib Mullick and Ms. Sonia Mukherjee, Counsel for the Petitioner;<\/p>\n

Mr. Priyankar Saha, Counsel for the Respondent.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Calcutta High Court held that an arbitrator unilaterally appointed by one party lacks inherent jurisdiction to adjudicate disputes between both the parties.<\/i><\/p>\n","protected":false},"author":67514,"featured_media":285956,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[2633,3226,57087,2513,2554,31135],"class_list":["post-290473","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-arbitral_award","tag-arbitration","tag-arbitration-conciliation-act-1996","tag-Calcutta_High_Court","tag-Jurisdiction","tag-sole-arbitrator"],"yoast_head":"\nArbitral award passed by unilaterally appointed arbitrator itself stands vitiated: Calcutta High Court | SCC Blog<\/title>\n<meta name=\"description\" content=\"Calcutta High Court held that arbitral award passed by 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