Party Is Entitled To Challenge Appointment Of Arbitrator In Violation Of Arbitration Act, At Any Stage - appointment of the Arbitrator unilaterally, is improper and impermissible - decision by an authority having no jurisdiction is non est in law

Citation

2023(3) CTC 1

Party Is Entitled To Challenge Appointment Of Arbitrator In Violation Of Arbitration Act, At Any Stage: Madras High Court

Case Title: P. Cheran vs M/s Gemini Industries & Imaging Limited

Citation: 2023 LiveLaw (Mad) 127

The Madras High Court has ruled that a party is entitled to challenge the appointment of the Arbitrator at any stage, if there is any violation of the provisions of the Arbitration and Conciliation Act, 1996 (A&C Act).

The court remarked that even if the award debtor had participated in the arbitral proceedings or, after having knowledge of the appointment of the sole Arbitrator, had failed to challenge the said appointment in terms of Section 13, the same would not deprive him of the right to challenge the said appointment under Section 34 for violation of the provisions of Section 12(5) of the A&C Act.

The bench of Justice Krishnan Ramasamy held that when the very appointment of the Arbitrator unilaterally, is improper and impermissible by virtue of Section 12(5), the arbitration proceedings are liable to be vitiated from the stage of the appointment of the Arbitrator. Further, a decision by an authority having no jurisdiction is non est in law and its invalidity can be set up whenever it is sought to be acted upon