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        2012 (12) TMI 1257 - SC - Indian Laws

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        Named arbitrator bias requires real, reasonable apprehension supported by cogent material; ex parte proceedings alone do not invalidate the award. A contractually named arbitrator will not be removed merely because one party alleges bias; the challenge must be supported by cogent material showing a ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Named arbitrator bias requires real, reasonable apprehension supported by cogent material; ex parte proceedings alone do not invalidate the award.

                          A contractually named arbitrator will not be removed merely because one party alleges bias; the challenge must be supported by cogent material showing a real and reasonable apprehension of bias. Prior inspection of the work, the termination of the contract, or the arbitrator proceeding ex parte after the contractor chose not to participate did not, by themselves, establish disqualification. The award also was not shown to involve misconduct or procedural unfairness, as the contractor had an opportunity to appear and present its case. The request to remove the named arbitrator therefore failed, and the award was not interfered with on grounds of bias or misconduct.




                          Issues: Whether the named arbitrator could be removed on the ground of bias and whether the arbitral award was liable to be set aside for alleged misconduct and procedural unfairness.

                          Analysis: The contract expressly named the Chief Engineer of the Corporation as arbitrator, and the contractor had agreed to that mechanism with knowledge of the Chief Engineer's role in the contract administration. Mere prior inspection of the work, the fact that the contract had been terminated, or the arbitrator's ex parte progress of the reference after the contractor declined to participate did not by itself establish bias. The challenge was found to rest on vague suspicions rather than cogent material showing a real likelihood or reasonable apprehension of bias. The award also did not disclose misconduct, and the contractor had been given opportunity to appear and present its case.

                          Conclusion: The request for removal of the named arbitrator failed, and the award was not liable to be interfered with on the ground of bias or misconduct.

                          Ratio Decidendi: Where parties have contractually chosen a named arbitrator, removal is justified only on proof of a real and reasonable apprehension of bias supported by cogent material, not on conjecture or dissatisfaction with the likely outcome.


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                          ActsIncome Tax
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