Bias of Even One Arbitrator Vitiates Award, Co-Arbitrators’ Neutrality No Cure: Madras High Court

The Madras High Court held that bias on the part of even a single arbitrator is sufficient to vitiate an arbitral award, and the presumed neutrality of co-arbitrators cannot cure such a defect.

The Court emphasised that parties are entitled to a fully independent and impartial arbitral tribunal, and unanimity of the award does not legitimise the participation of a biased member. 

The Court noted that bias strikes at the root of natural justice and violates Section 18 of the Arbitration Act, the Court quashed the award and imposed costs on the Union of India.

[Muthu Construction v. UOI]