{"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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toto; Guiding Principles for Appointment of Arbitrator reiterated","author":"Editor","date":"August 30, 2022","format":false,"excerpt":"\u00a0 \u00a0 Calcutta High Court: In a petition challenging the appointment of sole Arbitrator by the respondent, Shekhar B. 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":355319,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/08\/01\/del-hc-on-invalidity-of-unilateral-arbitrator-appointment\/","url_meta":{"origin":290473,"position":5},"title":"Delhi High Court: Unilateral arbitrator appointment invalid without express written waiver under Section 12(5) of Arbitration Act","author":"Niyati","date":"August 1, 2025","format":false,"excerpt":"\u201cThe waiver under Section 4 of the Arbitration and Conciliation Act, 1996 will be inapplicable to the unilateral appointments as it is governed by Section 12(5), which specifically provides for waiver by express agreement in writing.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Unilateral Arbitrator Appointment","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/08\/Unilateral-Arbitrator-Appointment.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/08\/Unilateral-Arbitrator-Appointment.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/08\/Unilateral-Arbitrator-Appointment.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/08\/Unilateral-Arbitrator-Appointment.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/290473","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67514"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=290473"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/290473\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/285956"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=290473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=290473"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=290473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}