Delhi High Court- Removal of Arbitrator under Sec.11 of the Arbitration and Conciliation Act

Overview

• On 09 February, 2021, the Delhi HC while giving a judgment on a petition filed in the case of, Oyo Hotels & Home Pvt. Ltd. V. Rajan Tewari & Anr, held that the court has the power to remove an arbitrator if the appointment is ex-facie contrary to the arbitration clause, and thus is non est in law.

Background of the case

• A petition was filed under Section 11(6) of the Arbitration and Conciliation Act, 1996.
• The petitioner filed the petition on the ground that he was not aware of the appointment of the sole arbitrator and the recommendation of the sole arbitrator in the case was mot confirmed by the petitioner.
• Even after his objection, the sole arbitrator carried with the proceedings.

Decision by the High Court

• The judge in the present case was Hon’ble Justice V. Kameswar Rao
• The court observed that under section 11 of the act, it can be clearly noticed that the sole arbitrator should mutually be appointed by both the parties
• The court also said that the petitioner was right to file a plea.
• The court held in this case, that the courts have the power to remove the learned sole arbitrator if the appointment is ex-facie contrary to the arbitration clause, and thus is not est in law.
• Hence, the court in the case removed the sole arbitrator and appointed Justice S.P Garg (retired judge of this court) as the sole arbitrator in the present case.