Supreme Court Sets Aside Fraudulent Arbitration Awards Rendered In Unilaterally Conducted Arbitral Proceedings

Introduction

The Supreme Court in State of Uttar Pradesh v. R.K. Pandey [2025:INSC:48] delivered an important ruling addressing the fraudulent invocation of arbitration proceedings and the unilateral appointment of arbitrators. The case involved ex parte arbitration awards secured by the respondent, R.K. Pandey, based on an arbitration agreement the very existence of which was contested.

The Supreme Court held that the arbitration proceedings were a sham, vitiated by fraud, and that the awards were null and void ab initio. The judgment reiterates the fundamental principle that arbitration, as an alternative dispute resolution mechanism, cannot be misused to perpetrate legal fraud. In this article, we navigate through the facts of the case and the findings rendered by the Supreme Court.