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Lower Rank of Arbitrator cannot be a ground to reject is verdict

Raj Kumar Makkad ,
  08 October 2010       Share Bookmark

Court :
Supreme Court of India
Brief :
Arbitral Award - Invalidation of Award passed by Arbitrator of low rank - Scope and interference of Court thereof - Whether Rank of Arbitrator can be a ground to invalidate the Award?
Citation :
Department of Telecommunications v. Gujarat Co-operative Milk Marketing Federation Ltd. (Decided on 24.09. 2010) MANU/SC/0755/2010

Held, the mere fact that the Arbitrator was of a rank lower than the officer who rejected the claim of the subscriber would not invalidate the arbitration or can be a reason for imputing bias to the Arbitrator. There is nothing irregular or erroneous in the said procedure. There was thus no ground for the High Court to interfere with the findings arrived at by the Arbitrator in exercising the power of judicial review. By assuming a non-existing appellate jurisdiction and by making wrong assumptions and drawing wrong inferences, the learned Single Judge has interfered with a reasoned arbitral award.

 
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Published in Corporate Law
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