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Disqualification of arbitrator with an interest in outcome of dispute: Kerala HC Ruling

Case Law Details

TaxGuru Citation
2024 taxguru.in 2330
Case Name
Groupl Services Private Limited Vs Dr. Sunil Vsudevan (Kerala High Court)
Date of Judgement/Order
Only available for paid members
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Groupl Services Private Limited Vs Dr. Sunil Vsudevan (Kerala High Court)

Kerala High Court’s ruling in the case of Groupl Services Private Limited vs. Dr. Sunil Vsudevan revolves around a petition filed under Section 14(2) read with Section 12(5) of the Arbitration and Conciliation Act, 1996. The petitioner sought termination of the mandate of the 1st respondent, who was appointed as the sole arbitrator in a dispute between the petitioner and the 2nd respondent, and substitution with an independent and impartial arbitrator.

The dispute arose from an agreement between the petitioner, a company registered under the Companies Act, 2013, and the 2nd respondent, a Government of Kerala undertaking. The agreement involved the establishment of a Centre of Excellence In Security Sector (CEIS). However, differences led to the issuance of a termination notice by the 2nd respondent to the petitioner. Subsequently, the 2nd respondent referred the dispute to arbitration, and the Government of Kerala appointed the 1st respondent as the sole arbitrator.

The petitioner alleged biased behavior by the 1st respondent during the arbitration proceedings, including denial of opportunities and failure to provide relevant documents. Moreover, the petitioner contended that the appointment of the 1st respondent by the Government of Kerala, a party to the dispute, was in violation of legal precedents.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,000

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