Supreme Court of India in Perkins Eastman Architects DPC & Anr Versus HSCC (India) Ltd., ARBITRATION APPLICATION NO. 32 OF 2019, has held that the person who has interest in the outcome of the decision of the dispute must not have the power to appoint a Sole Arbitrator.
Court looked into a number of judgements and law commission reports regarding ‘Neutrality of Arbitrators’, ‘party autonomy’ and ‘independence and impartiality of the Arbitrator’. And held that party autonomy cannot override the requirement of independence and impartiality of the Arbitrator, which is a hallmark of any arbitration proceedings.
This judgement has plugged a big loop hole in the justice system.
Understand in detail by watching this video:
You can read the complete Supreme Court of India Judgement here: