Without challenging arbitrator appointment and without participating in arbitral proceedings, despite having knowledge of the same, u/s 34 of Arbitration and Conciliation Act, 1996, challenging appointment of Arbitrator as well as Arbitral Award is not tenable – Arjun Mall Retail Holdings Pvt. Ltd. and Ors. Vs. Gunocen Inc. – Delhi High Court
Hon’ble High Court holds that in the present case, even if it is accepted that the appellants had raised objection to the appointment of Arbitrator by sending a letter to him but the fact remains that the appointment was never challenged under the provisions of Section 11(6) of the Act, 1996 nor did the appellants participate in arbitral proceedings, despite having knowledge of the same. Instead of contesting the respondent’s claim before the Arbitrator, the appellants remained mute spectator and only after losing the battle in arbitral proceedings, the appellants preferred appeal under Section 34 of the Act, challenging the appointment of Arbitrator as well as the Arbitral Award.