An Arbitral Tribunal Is Not Empowered To Pass An Ex Parte Ad Interim Order

INTRODUCTION:

The Bombay High Court in its recent decision in Godrej Properties Ltd. vs. Goldbricks Infrastructure Pvt. Ltd.¹ observed that it was unknown to law for an arbitral tribunal to pass an ex parte ad interim order, on a mere filing of an application under section 17 of the Arbitration and Conciliation Act, 1996, without even hearing the concerned parties to the arbitration.

FACTS:

Vide an order dated 22^nd January, 2021, passed by the Bombay High Court, by consent of the parties, a sole arbitrator was appointed to adjudicate upon the disputes between the parties. On 7^th October, 2021, the Petitioner received an email from the Respondent, forwarding a copy of an email addressed by the Respondent to the sole arbitrator, enclosing an application filed by the Respondent under section 17 ("said Application") of the Arbitration and Conciliation Act, 1996 ("the Act").