Case Note & Summary
This appeal arose from a dispute concerning alleged misconduct of an arbitrator. The appellant, a hardware corporation, challenged a judgment of the Letters Patent Bench of the Jammu and Kashmir High Court which had reversed a Single Judge's order. The Single Judge had held that the arbitrator had not misconducted himself or the proceedings. The Letters Patent Bench, however, found misconduct because the arbitrator had conducted sittings in premises owned by the appellant and had accepted tea and refreshments from them during such sittings. It was admitted that both contesting parties had equally shared the use of the premises and refreshments as part of courtesies. No objection of any sort was taken by either party at any point of time regarding the place of conduct of proceedings or the courtesies extended in the form of refreshments. The Supreme Court observed that it failed to appreciate how the arbitrator could be presumed to have corrupted himself by accepting those courtesies in these facts and circumstances. The counsel for the State of Jammu and Kashmir candidly stated that he was unable to support the decision of the Letters Patent Bench in any manner. Consequently, the Supreme Court allowed the appeal, set aside the impugned judgment and order of the Letters Patent Bench, and restored the judgment of the Single Judge without any order as to costs.
Headnote
A) Arbitration - Misconduct of Arbitrator - Acceptance of refreshments and use of premises - Not mentioned - Arbitrator conducted sittings in premises owned by appellant and accepted tea/refreshment; both parties shared premises and courtesies without objection. The Supreme Court held that this did not amount to misconduct, especially as no objection was raised at any stage. The Court set aside the Letters Patent Bench decision and restored the Single Judge's order. Held that in these facts and circumstances, the arbitrator could not be presumed to have corrupted himself by accepting such courtesies (Paras Not mentioned).
Issue of Consideration
Whether arbitrator misconducted himself by holding sittings in premises owned by one party and accepting refreshments from them when both parties shared courtesies and no objection was raised at any stage.
Final Decision
Appeal allowed. Impugned judgment and order of Letters Patent Bench set aside. Judgment of Single Judge restored. No order as to costs.
Law Points
- Acceptance of refreshments and use of premises by arbitrator does not amount to misconduct when both parties share courtesies and no objection raised
