NEERU WALIA Vs. INDERBIR SINGH UPPAL

JUDGEMENT

(1.) THIS petition has been filed by the petitioner under Section 14 and 15 of the arbitration and Conciliation Act, 1996 with a prayer that the mandate of arbitrator viz. Mr. Ghan Shyam Sunder Arora be terminated.

(2.) THE petitioner had first moved an application under Section 12 and 13 of the arbitration and Conciliation Act before the Arbitrator raising following issues before the Arbitrator: 1. That despite two hearings which had been held, this Forum has failed to disclose in writing that he has acted as broker for and on behalf of the claimant in the transaction in dispute and hence this Forum is not an independent and impartial Arbitrator. 2. That this Forum has signed the Agreements which were executed between the parties on dated. 3rd May, 2006 and on 14th July, 2006 as a witness on the instance of the petitioner. 3. That the Agreements are not valid and Respondent kept her right reserved to raise the objection in this regard at a proper stage. 4. That this Forum had acted as broker on behalf of the Claimant and has to get his brokerage/commission from the Claimant therefore, this Forum is not an unbiased or impartial person to act as an Arbitrator and therefore Respondent has no faith in this Arbitral Tribunal.

(3.) THE petitioner herein made a prayer to the Arbitrator that the Arbitrator should recuse himself on the ground that the Arbitrator had acted as a broker of the respondent in respect of the property in dispute and the petitioner had no faith in the Arbitrator and there was every possibility that Arbitrator will act in a biased manner since the Arbitrator would receive brokerage even in this deal if he passes an award in favour of respondent. This application of the petitioner was dismissed by the learned Arbitrator on 9th December, 2008 observing that Section 12 and 13 of the Act were not applicable in this case because the Arbitrator was not appointed as envisaged under Section 12 of the act but Arbitrator was a named Arbitrator in the arbitration agreement and the arbitrator though was a broker but was having equal distance from both the parties. The petitioner thereafter filed the present application for terminating the mandate of the Arbitrator on the same ground on which the petitioner made application before the learned Arbitrator.