In Brief
Aravali Power Company appointed its CEO as sole arbitrator in a construction dispute with Era Infra Engineering in August 2015, in accordance with the contract's arbitration clause. Era participated in arbitration proceedings but later challenged the appointment, contending the CEO was an interested party. The High Court set aside the appointment and directed nomination of a neutral panel. The Supreme Court allowed the appeal, holding that under the unamended 1996 Act, an employee arbitrator's appointment is valid if no justifiable apprehension of bias exists. Since Era had participated in proceedings without timely objection and there was no evidence of bias or controlling involvement, the appointment was lawful and could not be set aside.
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