Lack of Board Quorum Not Ground to Block Arbitration: Bombay High Court

The Bombay High Court held that a temporary absence of quorum in a company’s board did not invalidate arbitral proceedings under the Arbitration and Conciliation Act, 1996.

The Court rejected Master Drilling’s challenge, holding that a lack of board quorum was not “legal incapacity” and could not be used to block arbitration and observed that accepting such objections would severely disrupt corporate operations, as internal governance gaps could not override statutory mechanisms for dispute resolution.

The Court further held that issues relating to quorum were within the arbitral tribunal’s jurisdiction and imposed costs of ₹2 lakh for obstructing the proceedings.

[Master Drilling India Pvt Ltd v Sarel Drill & Engineering Equipment India Pvt Ltd]