High-priced ar­bi­tra­tor dis­qual­i­fied

Business Standard - - BUSINESS LAW -

An ar­bi­tra­tor who charges fees be­yond that pre­scribed un­der the Ar­bi­tra­tion and Con­cil­i­a­tion Act and the con­cerned high court in­curs dis­qual­i­fi­ca­tion, the Ra­jasthan High Court ruled in its or­der in the case, Dosh­ion Ltd vs Hin­dus­tan Zinc Ltd. In this case, a re­tired high court judge de­manded ~75 lakh as fees. Dosh­ion protested against this rate, while the ri­val pub­lic sec­tor firm had no ob­jec­tion. Then the ar­bi­tra­tor re­duced his de­mand to ~50 lakh, call­ing it a ‘dis­count’ and ‘benev­o­lence’. The ag­grieved firm moved a writ pe­ti­tion in the high court. It held that the ar­bi­tra­tor has be­come le­gally dis­qual­i­fied by de­mand­ing fee be­yond that set un­der the law. The high court stated that the de­mand made by the ar­bi­tra­tor would cause doubt in the mind of a party re­gard­ing prej­u­dice against it. It would also cast a shadow on the im­par­tial­ity of the pro­ceed­ings be­fore the ar­bi­tral tri­bunal. The court or­dered the re­place­ment of the ar­bi­tra­tor.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.