Appointment Of Managing Director/Chairman Of Party As Arbitrator Is Prohibited U/S 12(5) Of Arbitration Act: J&K High Court

The JK and Ladakh High Court held that the appointment of a managing director or chairman of a party arbitrator is prohibited under Section 12(5) of the Arbitration Act. The case involved the appointment of a party arbitrator, where one of the parties had appointed the managing director of a company as an arbitrator. The court found this to be a violation of the provisions of the Arbitration Act, which prohibits the appointment of certain persons as arbitrators to ensure impartiality. The ruling reinforces the need for impartiality in arbitration proceedings and ensures that arbitrators do not have conflicts of interest.