Saturday, September 15, 2012

ARBITRATOR'S CONFLICT OF INTEREST

The Delhi High court has set aside the arbitral award in a dispute between Shakti Bhog food
Ltd. and Kola Shipping Ltd. as the constitution of the arbitral tribunal was held to be invalid. One
of the main grounds for quashing the award was the main arbitrator failed to disclose the fact
concerning his having been an arbitrator on a related issue involving it. It gave rise to "justifiable
doubts as to his independence and impartiality." The High court further stated that the award was
also opposed to public policy on a collective reading of Sections 12 (3), 13 (5) and 34 (2) (b)
(ii) of the Arbitration and Conciliation Act.

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