Delhi High Court : Unilateral Appointment of a Sole Arbitrator Invalid in India

The Delhi High Court held that any arbitration agreement allowing for the unilateral appointment of a presiding or sole arbitrator is invalid in India.

The Bench of Justices Vibhu Bakhru and Tejas Karia held that such appointment by any party, in an arbitration seated in India, is strictly prohibited and considered as null and void since its very inception and violates Section 12(5) of the Arbitration and Conciliation Act. 

The bench set aside the ₹1.76 crore arbitral award in favour of the appellants, stressing that procedural equality and impartiality are essential to arbitration.