Calcutta High Court Sets Aside Ex-Parte Award Over Unilateral Appointment Of Arbitrator

The Calcutta High Court set aside an ex parte arbitral award in a ₹7.27-crore loan dispute after finding that SREI Equipment Finance Ltd. had unilaterally appointed the sole arbitrator.

The Court held that such an appointment violates natural justice and breaches Section 12(5) of the Arbitration and Conciliation Act, making the award a nullity.

It rejected objections on limitation, holding that delivery of the signed award was not proved, and clarified that Calcutta retained supervisory jurisdiction as the seat of arbitration.

The Court held such unilateral appointments are legally invalid and cannot be cured by participation.

[Y S Transport Company & Anr. v. SERI Equipment Finance Ltd.]