The Calcutta High Court, in a significant pronouncement by Justice Gaurang Kanth in L&T Finance Ltd. v. Jai Paras Material Store and Ors. (EC-COM 218 of 2026, decided on 14 May 2026), has reinforced the inviolable statutory safeguards governing the appointment of arbitrators under the Arbitration and Conciliation Act, 1996. The judgment examines whether an interested party’s unilateral invocation of an institutional mechanism can validly circumvent the prohibition against unilateral appointments, and clarifies the jurisdiction of executing courts under Section 36 to refuse enforcement of awards that are non-est in law.
The petitioner, L&T Finance Ltd., a non-banking financial company, had extended financial assistance to the respondents, Jai Paras Material Store and others, under a Loan Agreement dated 24.09.2022. Upon the respondents defaulting on repayment, the petitioner invoked the arbitration clause by a notice dated 29.03.2025, proposing Presolv360, an Online Dispute
