In Brief
The Supreme Court considered whether an arbitrator who had previously represented a partner of one party to the arbitration should have disclosed this conflict and recused himself. The arbitrator had acted as counsel for a partner in an unrelated case but did not disclose this when appointed to arbitrate a cold storage dispute. Despite receiving clear notice of this conflict, the arbitrator proceeded with the proceedings. The Court held that the arbitrator was obligated under Section 12 of the Arbitration and Conciliation Act to disclose the conflict and refrain from acting. The Court set aside the High Court's judgment and restored the trial court's order setting aside the award, emphasizing that in arbitration, parties select arbitrators based on trust and confidence, leaving no room for even a perception of bias. The case was remitted for fresh arbitration proceedings with all substantive issues open."
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