Case Note & Summary
The dispute arose from a building contract between the parties, where the respondent sought the appointment of an arbitrator due to differences during execution. The respondent had requested the appellant to nominate an arbitrator within 15 days, but the appellant failed to act. Subsequently, the respondent filed a petition under Section 8 of the Arbitration Act, 1940, leading to the appointment of a retired judge as arbitrator by the civil court. The appellant contested this, arguing that the respondent had waived bias and that the civil court lacked jurisdiction. The Supreme Court analyzed the arbitration agreement, emphasizing the importance of impartiality in arbitration. It concluded that the respondent's objections to the nominated arbitrator were valid, as the arbitrator had previously acted for the appellant, thus creating a potential bias. The court affirmed the trial court's appointment of an arbitrator, stating that the appellant had forfeited its right to appoint one by failing to do so within the stipulated time. The appeal was dismissed, reinforcing the principle that justice must not only be done but must also appear to be done.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Validity of Appointment - Arbitration Act, 1940, Section 8 - The court upheld the appointment of an arbitrator by the trial court, rejecting claims of bias against the arbitrator nominated by the appellant. The court found that the respondent had validly objected to the nomination based on prior dealings, thus the appointment by the trial court was legal and warranted no interference. (Paras 286-290).
Issue of Consideration
Whether the appointment of an arbitrator by the trial court was valid despite objections regarding bias.
Final Decision
The Supreme Court dismissed the appeal, affirming the trial court's appointment of an arbitrator as valid and legal.
Law Points
- Arbitration agreement
- appointment of arbitrator
- waiver of bias
- jurisdiction of civil court
- Section 8 Arbitration Act
- 1940
