Non-Disclosure of Conflict Vitiates Arbitral Award, Rules Delhi High Court

The Delhi High Court refused to enforce a foreign arbitral award in favour of MSA Global, holding that the arbitrator’s failure to disclose a prior professional association with the claimant’s chairman raised justifiable doubts about his independence.

The Court emphasised that disclosure under Section 12 of the Arbitration and Conciliation Act is mandatory and extends broadly to any circumstance that may affect impartiality.

It held that such non-disclosure deprived the opposing party of an opportunity to challenge the arbitrator, rendering the award contrary to the public policy of India under Section 48.

Accordingly, enforcement of the award was refused.

[MSA Global LLC (Oman) v. Engineering Projects (India) Ltd.]