Ex parte arbitral award without notice is invalid where the affected party was denied any opportunity of hearing.

An arbitral appointment made without notice to the affected party, followed by an ex parte award, is invalid because arbitral adjudication requires notice and a fair opportunity of hearing. Where the arbitrator is appointed without informing the respondent and the award is made ex parte, the award cannot be sustained and is liable to be set aside. The stated result is that both the appointment and the award were treated as illegal and void.

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Issues: Whether the appointment of the arbitrator and the ex parte award could be sustained when no notice was issued to the respondent before the appointment and no opportunity of hearing was afforded before the award was made.

Analysis: The contract contained an arbitration clause, but the arbitrator was appointed by the court without notice to the respondents. The award was admittedly ex parte. An arbitral award made without giving the affected party an opportunity of hearing is contrary to the basic requirements governing arbitral adjudication and cannot be treated as valid. The challenge to the appointment of the arbitrator and to the award, therefore, was properly upheld.

Conclusion: The appointment of the arbitrator and the ex parte award were illegal and void; the challenge failed against the respondents.

Ratio Decidendi: An arbitral appointment and award made without notice to the affected party and without affording an opportunity of hearing are invalid and liable to be set aside.

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