From Perkins To Bhadra: The Rule Of Protection Against Unilateral Appointments

The Supreme Court’s decision in Bhadra International (India) Pvt. Ltd. v. Airports Authority of India, 2026 INSC 6 finally settles the long-standing debate around unilateral appointment of arbitrators. For practitioners, the judgment is significant not because it introduces new law, but because it decisively closes the escape routes that were frequently relied upon to defend such appointments. The Court makes it clear that neutrality in arbitration begins at the stage of appointment, and not after proceedings have commenced.

The dispute arose from licence agreements which allowed the Chairman of the Airports Authority of India (AAI) to appoint a sole arbitrator. After disputes arose, the Chairman exercised this power and the arbitration proceeded without objection. The tribunal ultimately rendered a nil award. It was only at the Section 34 stage that the claimant challenged the award, contending that the arbitrator was unilaterally appointed by a person who was himself ineligible