Mar 30, 2020

SC Ruling on Challenge to Award due to Misconduct by Arbitrator

The SC, in Jagjeet Singh Lyallpuri v. Unitop Apartments and Builders Limited[1] has observed that once the parties have consented to the procedure of the arbitral proceedings, including not cross-examining the witnesses, the parties are thereafter estopped from challenging the arbitral award on the ground that the arbitrator misconducted himself by not permitting the parties to cross-examine the witnesses.

Since the arbitrator had, in the presence of the parties, recorded that the parties would rely upon the affidavits and documents that were filed and the procedure of cross-examination could be dispensed with, a party could not raise this issue as a ground to challenge the award at a later stage.

[1] Jagjeet Singh Lyallpuri v. Unitop Apartments and Builders Limited, (2020) 2 SCC 279.

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