Whether the court can execute a void arbitral award if parties had participated in the arbitration proceeding?

 Prima facie, if the award is void ab initio on the ground of ineligibility of an arbitrator, the participation of any party in the arbitral proceedings may not be sufficient to infuse life to the arbitral proceedings.

IN THE HIGH COURT OF DELHI AT NEW DELHI

 CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU

 O.M.P. (COMM) 16/2020 & I.A. 438/2020 & I.A. 440/2020; 

RUIA EXPORTS & ANR. Vs MONEYWISE FINANCIAL SERVICES PVT.LTD & ORS.

Dated: 23.03.2022 

1. This Court has briefly heard Mr. Garg as to whether the arbitral award is sustainable. He has referred to a decision of the Coordinate Bench of this Court in Abraham Memorial Education Trust Vs. Prodigy Development Institution (earlier known as ATNT Infrastructure Services Pvt. Ltd): O.M.P. (COMM.) 391/2020 decided on 23.03.2021.This Court had held that the arbitral award was void ab initio since it was rendered by an arbitrator unilaterally appointed by the parties, which is impermissible.

2. The learned counsel appearing for the respondent does not dispute that unilateral appointment of an arbitrator is impermissible in view of the decision of the Supreme Court in Perkins Eastman Architects DPC & Anr. v. HSCC (India) Ltd.: 2019 SCC OnLine SC. He, however, submits that since the petitioner had participated in the arbitral proceedings, it is precluded from raising objections on this ground.

3. Prima facie, if the award is void ab initio on the ground of ineligibility of an arbitrator, the participation of any party in the arbitral proceedings may not be sufficient to infuse life to the arbitral proceedings.

4. Undeniably, the question is a substantial one and requires consideration.

5. In view of the above, the enforcement of the impugned award is stayed.

6. List for further proceedings on 19.05.2022.

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