Karnataka High Court: Unilateral Appointments of Arbitrator Without Consent or Court Order Not Allowed

The Karnataka High Court ruled that an arbitrator named in a Section 21 notice under the Arbitration and Conciliation Act, 1996, cannot assume jurisdiction or issue orders without the other party's consent or a formal appointment under Section 11 or with mutual consent. 

Justice Suraj Govindaraj emphasized that unilateral appointments violate due process.  

The case concerned Shriram Transport Finance Company, which appointed an arbitrator and secured a vehicle repossession order before informing the borrower’s family.

The Court found this process irregular and directed the Director General of Police to investigate the manner in which the vehicle seizure was carried out.