Concept of Appointing Named Arbitrators Who Himself is an Interested Party is Not Sustainable : HC

The Uttarakhand High Court, led by Chief Justice G. Narendra, ruled that appointing arbitrators with conflicts of interest is unsustainable.

This case arose from a contractual dispute over the Jummagad Small Hydro Project, where Clause 28.0 named the Principal Secretary or their nominee as sole arbitrator.

The applicants contested this clause, citing the Perkins Eastman Architects judgment, which prohibits unilateral appointments by interested parties.

The court upheld the principle of impartiality, declaring such arbitration clauses invalid.

By appointing an independent arbitrator, the court reinforced fairness and neutrality in arbitration, setting a significant precedent for unbiased dispute resolution in India.