J&K and Ladakh HC rules against Managing Director acting as Arbitrator

The Jammu & Kashmir and Ladakh High Court ruled that a Managing Director or Chairman of a party to an arbitration agreement cannot act as an arbitrator, as per Section 12(5) of the Arbitration and Conciliation Act, 1996, and the Seventh Schedule. 

The case involved a lease dispute where the petitioner sought the appointment of an independent arbitrator after the respondent cancelled the lease.

The Court invalidated the lease clause appointing the Managing Director as the arbitrator, citing violations of impartiality principles.

The Court has appointed an independent arbitrator to resolve the dispute.