Concept Of Appointing Named Arbitrator Who Is An Interested Party Is No Longer Sustainable: Uttarakhand High Court

The Uttarakhand High Court addressed the validity of a clause allowing an interested party to appoint an arbitrator, ruling it as invalid. The case involved a challenge to the appointment of an arbitrator by one of the parties, with claims that it created a conflict of interest. The Court emphasized that such clauses violate the principles of impartiality and fairness in arbitration proceedings. It reaffirmed that arbitrators must be appointed in a manner that ensures neutrality and avoids any appearance of bias, safeguarding the integrity of the arbitration process.