Appointment Of Arbitrator As 'Observer' In Another Matter Does Not Render Him Ineligible Under 5th & 7th Schedule Of A&C Act: Delhi High Court

The Delhi High Court has affirmed an arbitrator's mandate, ruling that a prior role as an "observer" does not automatically lead to disqualification under Schedules 5 or 7 of the Arbitration and Conciliation Act. These schedules list circumstances that could give rise to justifiable doubts about an arbitrator's impartiality or independence. The court emphasized that merely observing proceedings without active participation or a direct interest in the outcome does not constitute a conflict of interest. This decision provides clarity on the scope of disqualification clauses, aiming to prevent unnecessary challenges to arbitral appointments based on peripheral associations.