Awards by unilaterally appointed arbitrators are not executable: Delhi HC

New Delhi, 22/6: In a significant decision, the Delhi High Court has upheld a commercial court judgement that stated that awards passed by unilaterally appointed arbitrators are not executableIt is seen as an important development in arbitration and alternate dispute resolution in India as execution of such an award was refused by Commercial Court even though there was no objection or challenge to such unilateral appointment of arbitrator by NBFC and Bank.

 

A division bench of Justices Vibhu Bakhru and Amit Mahajan agreed with the view taken by the Commercial Court that when appointment itself is in violation of Section 12(5) and Schedule 7 of the Arbitration & Conciliation Act, 1996, any award passed by such an arbitrator is a nullity and can’t be executed.

 

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