Arbitration In IndiaIf a past professional relationship creates apprehension of bias, arbitrator’s mandate should be terminated

Roshan Real Estates Pvt Ltd. v. Government of NCT of Delhi

Court – Delhi High Court

Citation – O.M.P.(T)(COMM.) 23/2025

Date – 01.07.2025

The Hon’ble Delhi High Court has held that if a past professional relationship between the party and the arbitrator creates apprehension of bias, arbitrator’s mandate should be terminated irrespective of what the duration of that relationship was.

The Court held,

“38. The fact that weighs with me is that the appointed arbitrator is not a mere past/former employee, rather, he had a prior supervisory and business/professional relationship with the petitioner and his prior appointment as arbitrator has been withdrawn by the respondent itself on the similar objection by the petitioner.

39. In addition, the fact that the appointed arbitrator submitted a declaration under Section 12(1) of the Act is not determinative. Where statutory ineligibility is attracted under Section 12(5) of the Act, a declaration does not cure the disqualification.

40. It is also undisputed that no express post-dispute written waiver has been executed by the petitioner, as required by the proviso to Section 12(5) of the Act. Therefore, the ineligibility under the Seventh Schedule cannot be cured by acquiescence or mere silence and hence, the mandate of the appointed arbitrator is legally untenable.

41. Further, the Order dated 10.02.2025 passed by this Court appointing Mr. B.B. Dhar does not reflect any of the aforesaid facts and thus, was passed in the absence of the aforesaid facts being brought to the notice of the Court.

42. Hence, I am of the considered opinion that the appointment of Mr. B.B. Dhar as the sole arbitrator falls squarely within the scope of statutory ineligibility contemplated under Section 12(5) read with Seventh Schedule of the Act.”

– Team AMLEGALS

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