Delhi High Court Rules Unilateral Arbitrator Appointment Invalid Without Post-Dispute Written Waiver

Introduction

In a recent judgment, the Delhi High Court reaffirmed the principles of impartiality and procedural fairness in arbitration, holding that a party cannot invoke the protections of Section 12(5) of the Arbitration and Conciliation Act, 1996, if it has unilaterally appointed an arbitrator without securing the express written waiver of the other party after the dispute has arisen. The decision in M/s Mahavir Prasad Gupta and Sons v. Govt. of NCT of Delhi (FAO (COMM) 170/2023) marks yet another significant intervention in India's evolving arbitration jurisprudence, which continues to strike a balance between promoting efficiency and upholding fundamental safeguards.

Factual Background