As per case facts, an arbitral award in favour of M/S Airport Handling Services was set aside by a District Judge, who held the Sole Arbitrator de jure unable to ...
FAO (COMM) 231/2026 Page 1 of 18
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* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Judgment reserved on: 16.09.2026
Judgment pronounced on: 28.09.2026
Judgment uploaded on: 28.09.2026
# CNR No. DLHC010368972026
+ FAO (COMM) 231/2026 and CM APPL. 53142/2026
M/S AIRPORT HANDLING SERVICES .....Appellant
Through: Mr. Jawahar Raja, Mr. Anirudh
Ramanathan, Ms. Sonali Shelar,
Ms. Tamanna Pankaj, Mr.
Sumit Wadhva, Ms. Priya Vats,
Mr. Anoop George, Mr. Nitai
Hinduja, Mr. Ishaan Goel,
Advs.
versus
INDIAN INSTITUTE OF TECHNOLOGY, KANPUR
.....Respondent
Through: Mr. Manish Paliwal, Adv.
CORAM:
HON'BLE MR. JUSTICE ANIL KSHETARPAL
HON'BLE MS. JUSTICE SHAIL JAIN
J U D G M E N T
ANIL KSHETARPAL, J.:
1. The present Appeal under Section 37
1
of the Arbitration and
Conciliation Act, 1996
2
, read with Section 13 of the Commercial
Courts Act, 2015, assails the judgment dated 19.05.2026
3
passed by
the learned District Judge (Commercial Courts)-03, Central District,
Tis Hazari Courts, Delhi in O.M.P.(COMM.) No.44/2024, whereby
1
Hereinafter referred to as „Section 37‟
2
Hereinafter referred to as „A&C Act‟
3
Hereinafter referred to as „Impugned Judgment‟
FAO (COMM) 231/2026 Page 2 of 18
the learned District Judge allowed the petition
4
under Section 34
5
of
the A&C Act and set aside the arbitral award dated 28.02.2024
6
passed by the learned Sole Arbitrator, Hon‟ble Ms. Justice (Retd.)
Sangita Dhingra Sehgal.
2. The challenge raised by the Appellant is confined to the
finding of the learned District Judge that the learned Sole Arbitrator
was de jure unable to act as an arbitrator by virtue of Rule 11(3)
7
of
the Consumer Protection (Conditions of Service of President and
Members of the State Commission or District Commission) Model
Rules, 2020
8
. It is contended that Rule 11(3), even if construed as
creating a disability upon the learned Sole Arbitrator, is a condition of
service and cannot be equated with the ineligibility contemplated
under Section 12(5)
9
read with the Seventh Schedule
10
to the A&C
Act. The Appellant further contends that the learned District Judge
erred in treating the absence of an express written waiver under the
proviso to Section 12(5) as determinative of the validity of the Award.
3. The controversy, therefore, essentially concerns the effect of
Rule 11(3) upon the mandate of an arbitrator, the distinction between
de jure inability under Section 14(1)(a)
11
of the A&C Act and de jure
ineligibility under Section 12(5) read with the Seventh Schedule, and
whether the absence of an express written waiver under the proviso to
4
Hereinafter referred to as „Section 34 Petition‟
5
Hereinafter referred to as „Section 34‟
6
Hereinafter referred to as „Award‟
7
Hereinafter referred to as „Rule 11(3)‟
8
Hereinafter referred to as „Service Rules‟
9
Hereinafter referred to as „Section 12(5)‟
10
Hereinafter referred to as „Seventh Schedule‟
11
Hereinafter referred to as „Section 12(1)(a)‟
FAO (COMM) 231/2026 Page 3 of 18
Section 12(5) could invalidate the Award in the facts of the present
case.
FACTUAL MATRIX:
4. The relevant facts, necessary for adjudication of the present
Appeal, may be briefly noticed.
5. The Appellant is a partnership firm engaged in the business of
customs clearance, shipping and freight forwarding services. The
Appellant obtained registration as a Micro, Small and Medium
Enterprise („MSME‟) under the Micro, Small and Medium Enterprises
Development Act, 2006
12
on 29.08.2012. The Respondent is the
Indian Institute of Technology, Kanpur, an autonomous institution of
national importance constituted under the Institute of Technology Act,
1961.
6. The parties had entered into various Service Agreements
during the period from 2003 to 2011 and thereafter from 2014 to
2017. In pursuance thereof, the Appellant raised invoices during the
period from 2004 to 2018 aggregating to approximately
Rs.21,29,57,915/-. Against the said invoices, payments aggregating to
approximately Rs.21,16,64,706/- were made by the Respondent. The
last payments of Rs.2,200/- and Rs.5,035.83/- were made on
03.05.2018.
7. The Appellant thereafter addressed reminders dated
11.07.2018, 05.11.2019 and 11.11.2019 seeking payment of the
12
Hereinafter referred to as „MSMED Act‟
FAO (COMM) 231/2026 Page 4 of 18
outstanding amount. A legal notice was also issued by the Appellant
on 29.03.2022.
8. The Appellant filed its claim before the Micro and Small
Enterprises Facilitation Council („MSEFC‟) on 06.05.2022. Since the
conciliation proceedings did not result in a settlement, the dispute was
referred to the Delhi Arbitration Centre („DAC‟) on 08.06.2023 under
Section 18(3) of the MSMED Act.
9. The DAC, vide communication dated 07.07.2023, appointed
the Sole Arbitrator. The learned Sole Arbitrator submitted the
declaration contemplated under Section 12 of the A&C Act on
11.07.2023. The Appellant thereafter filed its Statement of Claim on
31.07.2023. The Respondent filed its Statement of Defence on
19.08.2023. No objection to the jurisdiction or competence of the
Arbitral Tribunal was raised under Section 16(2) of the A&C Act. The
parties thereafter participated in the arbitral proceedings and filed their
respective evidence affidavits. The Award came to be rendered on
28.02.2024, whereby the learned Sole Arbitrator awarded a sum of
Rs.27,76,996/- inclusive of interest on the principal amount in favour
of the Appellant.
10. Aggrieved by the Award, the Respondent preferred a Section
34 Petition on 31.05.2024. The learned District Judge, during the
course of those proceedings, directed deposit of 75% of the amount
awarded in terms of Section 19 of the MSMED Act. The Appellant
deposited a sum of Rs.20,82,747/- on 16.09.2024.
11. The Respondent, in its original Section 34 Petition, did not
challenge the competence or eligibility of the learned Sole Arbitrator
FAO (COMM) 231/2026 Page 5 of 18
on the ground subsequently urged with reference to Rule 11(3). The
said objection was raised for the first time in the Rejoinder dated
21.01.2025. The Appellant objected to the said plea by way of its Sur-
rejoinder dated 03.02.2025.
12. The learned District Judge, vide the Impugned Judgment,
rejected the other grounds raised by the Respondent in the Section 34
Petition. However, on the objection relating to the competence of the
learned Sole Arbitrator, the learned District Judge held that Rule 11(3)
operated as a legal bar against the learned Sole Arbitrator undertaking
arbitral work while holding the office of President of the Delhi State
Consumer Disputes Redressal Commission („SCDRC‟). The learned
District Judge consequently held that the learned Sole Arbitrator was
de jure unable to act and, on this ground, set aside the Award.
13. It is against the aforesaid finding, which was the sole ground
on which the Award came to be set aside, that the present Appeal has
been preferred.
CONTENTIONS OF THE PARTIES:
14. Heard learned counsel representing the parties and, with their
able assistance, perused the record.
15. Learned counsel representing the Appellant has made the
following submissions:
i. The learned District Judge erred in setting aside the Award on
the ground that Rule 11(3) disabled the learned Sole Arbitrator
from acting as an arbitrator. According to the Appellant, the said
Rule is a condition governing the service of the President of the
FAO (COMM) 231/2026 Page 6 of 18
Delhi SCRDC and does not constitute a statutory ineligibility
under Section 12(5) read with the Seventh Schedule.
ii. The distinction between de jure inability under Section
14(1)(a) and de jure ineligibility under Section 12(5) has been
authoritatively recognised by the Supreme Court in Bhadra
International (India) Pvt. Ltd. v. Airports Authority of India
13
.
It is contended that while a statutory provision may render an
arbitrator de jure unable to continue, every such inability does
not attract Section 12(5), which is specifically confined to the
categories enumerated in the Seventh Schedule.
iii. The learned District Judge erred in relying upon the absence
of an express written waiver under the proviso to Section 12(5).
The requirement of an express agreement in writing arises only
where Section 12(5) is attracted. Since no relationship or
circumstance falling within the Seventh Schedule has been
identified in the present case, the proviso to Section 12(5) has no
application.
iv. The Appellant further relies upon the judgment of this Court
in Delhi Integrated Multi Modal Transit Systems Ltd. v. Delhi
Jal Board
14
, wherein, in the context of an identical objection
based upon the conditions of service applicable to a member of a
Consumer Forum, this Court held that even if acting as an
arbitrator was in violation of the conditions of service, the
consequence for such violation would follow, but that did not
13
2026 SCC OnLine SC 7
14
(O.M.P.)(T)(COMM.) 16/2021
FAO (COMM) 231/2026 Page 7 of 18
mean that the mandate of the arbitrator stood automatically
terminated.
v. The arbitration in the present case was a statutory arbitration
arising under Section 18 of the MSMED Act and was conducted
through the DAC. The appointment was made by the DAC
pursuant to the statutory reference and the DAC Arbitration
Rules, 2023 specifically recognise statutory arbitrations as a
distinct category.
vi. The Respondent participated in the arbitral proceedings
without raising any objection to the competence of the learned
Sole Arbitrator under Section 16 of the A&C Act or seeking
determination of the alleged de jure inability under Section
14(1)(a). The objection founded upon Rule 11(3) was introduced
for the first time by way of Rejoinder in the Section 34
proceedings and could not be permitted to furnish a new ground
for setting aside the Award.
16. Per contra, learned counsel representing the Respondent has
supported the Impugned Judgment and has contended that Rule 11(3)
imposed an absolute restriction upon the learned Sole Arbitrator from
undertaking arbitral work while holding office as President of the
SCDRC. It is contended that the learned Sole Arbitrator was,
therefore, legally incapable of acting as an arbitrator and that the
Award rendered by her could not be sustained.
17. Learned Counsel representing the Respondent has further
relied upon the judgment of the Supreme Court in Bhadra
International (supra) to contend that a person who is legally
FAO (COMM) 231/2026 Page 8 of 18
ineligible to act as an arbitrator becomes de jure unable to continue
under Section 14(1)(a). It is submitted that the absence of an express
written waiver by the Respondent is consequently fatal to the
continuation of the learned Sole Arbitrator.
18. Reliance has also been placed upon the judgment of the
Allahabad High Court in Lucknow Development Authority Through
Vice Chairman v. Sudhanshu Rastogi
15
, in support of the proposition
that a person holding the office of a Consumer Commission cannot
simultaneously undertake arbitral assignments contrary to the
applicable Service Rules.
19. No other submissions have been advanced by learned counsel
representing the parties.
ANALYSIS AND FINDINGS:
20. The principal question which arises for consideration in the
present Appeal is whether the prohibition contained in Rule 11(3),
assuming the same to be applicable to the learned Sole Arbitrator,
rendered her de jure ineligible under Section 12(5) or de jure unable
under Section 14(1)(a) so as to invalidate the Award.
21. At the outset, it is necessary to notice the distinction between
the aforementioned two provisions of the A&C Act. For the sake of
convenience, Sections 12(5) and 14(1)(a) are reproduced hereinbelow:
“12. Grounds for challenge.-
…
(5) Notwithstanding any prior agreement to the contrary, any person
whose relationship, with the parties or counsel or the subject-matter of
15
2023:AHC-LKO:2097
FAO (COMM) 231/2026 Page 9 of 18
the dispute, falls under any of the categories specified in the Seventh
Schedule shall be ineligible to be appointed as an arbitrator:
Provided that parties may, subsequent to disputes having arisen
between them, waive the applicability of this sub-section by an
express agreement in writing.
***
14. Failure or impossibility to act.- (1) The mandate of an arbitrator
shall terminate and he shall be substituted by another arbitrator, if-
(a) he becomes de jure or de facto unable to perform his functions
or for other reasons fails to act without undue delay; and
…”
(Emphasis supplied.)
22. Section 12(5) provides that, notwithstanding any prior
agreement to the contrary, a person whose relationship with the
parties, counsel or the subject matter of the dispute falls within any of
the categories specified in the Seventh Schedule shall be ineligible to
be appointed as an arbitrator. The proviso permits the parties,
subsequent to disputes having arisen, to waive the applicability of the
said provision by an express agreement in writing.
23. Section 14(1)(a), on the other hand, contemplates termination
of the mandate where an arbitrator becomes de jure or de facto unable
to perform his or her functions. The expression “de jure inability” is
thus not confined, by the language of Section 14(1)(a), only to
circumstances arising under Section 12(5) or the Seventh Schedule.
24. The distinction assumes significance in view of the judgment
of the Supreme Court in Bhadra International (supra). The Supreme
Court, while examining the scheme of Sections 12(5) and 14(1)(a),
has explained the distinction between de jure ineligibility and de jure
inability. The relevant paragraphs are reproduced hereinbelow:
FAO (COMM) 231/2026 Page 10 of 18
“61. In the aforesaid context, it would be apposite to briefly explain
what constitutes as de jure ineligibility under Section 12(5). The
expression de jure denotes a condition rooted in strict compliance
with the requirements of law. De jure inability refers to a situation in
which an arbitrator is legally incapable of performing his functions
and is, by operation of law, barred from continuing in office. Such
inability strikes at the very root of the arbitrator's authority to act,
thereby affecting his inherent capacity to discharge his functions as
an arbitrator. It is this legal incapacity, arising from statutory
disqualifications, that results in the termination of the “mandate of
an arbitrator” under Section 14(1)(a) of the Act, 1996.
62. De jure inability referred to under Section 14(1)(a) may arise from
the provisions of the Act, 1996, or from any other existing law that
renders an arbitrator legally incapable of performing his functions. As
regards de jure ineligibility, it flows from sub-section (5) of Section
12 read with the Seventh Schedule, which disqualifies certain
persons from being appointed or continuing as arbitrators.
63. In other words, the ineligibility under Section 12(5) precedes de
jure inability under Section 14(1)(a). In other words, de jure
ineligibility is the specie and de jure inability is the genus. To put
this in context, de jure inability is determined when an aggrieved
party is able to indicate that the circumstances under the Seventh
Schedule have been met.”
(Emphasis supplied.)
25. Thus, while de jure inability refers to a legal incapacity to
perform the functions of an arbitrator, which may arise under the
A&C Act or any other existing law, de jure ineligibility specifically
flows from Section 12(5) read with the Seventh Schedule. The
Supreme Court has accordingly held that de jure ineligibility is a
species of de jure inability, which is the genus. Thus, while a person
falling within a category specified in the Seventh Schedule would
necessarily be de jure unable to act as an arbitrator, every legal
disability rendering a person incapable of acting as an arbitrator would
not, by that fact alone, constitute an ineligibility under Section 12(5).
26. The same distinction is evident from the discussion of the
Supreme Court and Madras High Court in HRD Corporation (Marcus
FAO (COMM) 231/2026 Page 11 of 18
Oil and Chemical Division) v. GAIL (India) Ltd.
16
and Clarke
Energy India Pvt. Ltd. v. SAS EPC Solution Pvt. Ltd.
17
, respectively.
The Seventh Schedule identifies specific relationships and
circumstances in which a person is statutorily rendered ineligible to
act as an arbitrator. Such ineligibility, once established, results in the
arbitrator being de jure unable to perform the functions of an
arbitrator within the meaning of Section 14(1)(a). However, this does
not mean that every case of de jure inability would necessarily fall
under Section 12(5) and the Seventh Schedule.
27. In Bhadra International (supra), the Supreme Court was
concerned with a situation where the disqualification of the arbitrator
arose from the specific circumstances enumerated in the Seventh
Schedule. It was in that context that Section 12(5) was attracted and
the requirement of an express agreement in writing under the proviso
to Section 12(5) assumed significance.
28. The principle regarding waiver by an express agreement in
writing, as explained by the Supreme Court in Bharat Broadband
Network Limited v. United Telecoms Ltd.
18
, is consequently a
consequence of Section 12(5). Where an arbitrator falls within one of
the categories specified in the Seventh Schedule, the statutory
prohibition under Section 12(5) operates notwithstanding any prior
agreement to the contrary. A waiver of that prohibition can then be
made only in the manner prescribed by the proviso, namely, by an
express agreement in writing entered into after the disputes have
arisen.
16
(2018) 22 SCC 471
17
2021 SCC OnLine Mad 6121
18
(2019) 5 SCC 755
FAO (COMM) 231/2026 Page 12 of 18
29. The question, therefore, in the present case is anterior to the
question of waiver. It must first be determined whether Rule 11(3)
brings the learned Sole Arbitrator within the statutory ineligibility
contemplated under Section 12(5) read with the Seventh Schedule.
30. There is no finding in the Impugned Judgment, nor has any
material been placed before this Court, to establish that the learned
Sole Arbitrator had any relationship with the Appellant, the
Respondent, the counsel representing either party or the subject matter
of the dispute which falls within any of the categories specified in the
Seventh Schedule. The objection to her appointment is founded
entirely upon Rule 11(3).
31. Rule 11(3), as relied upon by the Respondent, is a provision
governing the conditions of service of the President and Members of
the State Commission or District Commission. The prohibition
contained therein may, depending upon its interpretation and
applicability, regulate the conduct of a person holding such office and
may have consequences under the law governing such office.
However, a service-condition restriction cannot, without more, be
transposed into an ineligibility under Section 12(5).
32. This distinction has also been recognised by this Court in
Delhi Integrated Multi Modal Transit Systems Ltd. (supra), where an
objection was raised to the continuation of an arbitrator on the ground
that his appointment as a member of a Consumer Forum disabled him
from undertaking arbitral work. This Court specifically observed in
Paragraph No.36, as extracted hereinbelow:
“36. It is not necessary to go into the question whether the
conditions of service as applicable to the learned Arbitrator disabled
FAO (COMM) 231/2026 Page 13 of 18
him from taking any assignment as an arbitrator or continuing as
such. This is for the reason that if acting as an arbitrator is in
violation of the terms and conditions of his service as a member of
the District Consumer Forum, the consequence for violating the said
conditions of service would follow. However, that does not mean that
the mandate of the learned Arbitrator stands automatically
terminated.”
(Emphasis supplied.)
33. The aforesaid observation is of particular relevance to the
controversy before this Court. A breach of a condition governing the
office held by an arbitrator may entail consequences under the
statutory or regulatory framework governing that office. Such
consequence, however, cannot automatically be equated with
termination of the arbitral mandate under Section 12(5), particularly
when the alleged disability does not arise from any of the
circumstances specified in the Seventh Schedule.
34. The reliance placed by the learned District Judge upon
Bhadra International (supra) to hold that an express written waiver
under the proviso to Section 12(5) was necessary, therefore, proceeds
from a conflation of de jure inability with de jure ineligibility. The
fact that a particular legal provision may, in an appropriate case,
render an arbitrator de jure unable under Section 14(1)(a) does not
mean that the arbitrator consequently falls within Section 12(5) unless
the statutory requirements of that provision are independently
satisfied.
35. Put differently, Section 14(1)(a) may encompass legal
disabilities arising from sources other than the Seventh Schedule. But
where the alleged disability is not one contemplated by Section 12(5),
the proviso to Section 12(5) cannot be invoked to insist upon an
FAO (COMM) 231/2026 Page 14 of 18
express written waiver as a condition for the validity of the arbitral
mandate.
36. The judgment of the Allahabad High Court in Lucknow
Development Authority (supra), relied upon by the Respondent, does
not advance the case of the Respondent any further. The said decision
arose in proceedings concerning appointment and substitution of an
arbitrator under Sections 11(6) and 15(2) of the A&C Act, where the
arbitrator had recused herself upon being appointed to the Uttarakhand
SCDRC. The Court was thus concerned with the continuation and
substitution of an arbitrator in the context of an ad hoc arbitration.
37. The present case stands on a materially different footing. The
arbitration arose from a statutory reference under Section 18 of the
MSMED Act. The MSEFC referred the dispute to the DAC under
Section 18(3), and the learned Sole Arbitrator was appointed by the
DAC pursuant to the said reference. The DAC Arbitration Rules, 2023
themselves recognise statutory arbitration as a distinct category and
provide for appointment of a Sole Arbitrator by the Registrar in such
cases.
38. More importantly, the question before us is not whether a
person holding an office under the Consumer Protection framework
should, as a matter of service discipline, undertake arbitral
assignments. The question is whether such service restriction, by
itself, renders the person ineligible under Section 12(5) and
consequently requires an express written waiver under its proviso. For
the reasons already noticed, the answer must be in the negative.
FAO (COMM) 231/2026 Page 15 of 18
39. It is also material that the learned Sole Arbitrator had
furnished the declaration contemplated under Section 12 before
entering upon the reference. The Respondent thereafter filed its
Statement of Defence and participated in the arbitral proceedings
without raising any objection to the competence of the learned Sole
Arbitrator. No objection under Section 16(2) was taken and no
application was made during the arbitral proceedings seeking
termination of the mandate on the ground subsequently urged before
the learned District Judge.
40. The Respondent first raised the objection based upon Rule
11(3) in the Rejoinder filed in the Section 34 proceedings. While the
timing of the objection is not, by itself, determinative of a question of
statutory ineligibility as reiterated by the Supreme Court in Bhadra
International (supra). However, the timing of the objection assumes
significance when the Respondent seeks to characterise a service-
condition restriction as an absolute statutory bar under Section 12(5),
despite having participated throughout the arbitral proceedings
without raising such an objection.
41. Section 4 of the A&C Act embodies the principle of waiver
where a party, knowing that any requirement under the A&C Act from
which the parties may derogate or any requirement under the
arbitration agreement has not been complied with, proceeds with the
arbitration without stating its objection without undue delay. The
present case, however, does not require the Court to rest its conclusion
solely upon waiver under Section 4. The more fundamental reason is
that the alleged disability under Rule 11(3) has not been shown to
FAO (COMM) 231/2026 Page 16 of 18
constitute an ineligibility under Section 12(5) read with the Seventh
Schedule in the first place.
42. The challenge to the constitution of the Tribunal, therefore,
cannot be sustained by importing into the present case the line of
authorities dealing with unilateral appointment of arbitrators who were
themselves rendered ineligible under Section 12(5) or were otherwise
disqualified from making such appointments. The foundation upon
which those decisions operate is materially absent in the present case.
43. The Respondent‟s objection, in substance, is that the learned
Sole Arbitrator, while holding the office of President of the SCDRC,
could not undertake arbitral work by reason of the Service Rules.
Even assuming the correctness of that premise, the consequence of
such violation would have to be determined under the law governing
the office of the learned Sole Arbitrator. It does not follow that the
Award is automatically rendered void ab initio under the A&C Act.
44. It is also significant that the Respondent has not alleged any
actual bias, partiality or lack of independence on the part of the
learned Sole Arbitrator. The objection is founded exclusively upon the
alleged prohibition contained in the Service Rules. The issue,
therefore, remains one of legal competence and cannot be converted
into a challenge based upon the Fifth or Seventh Schedule in the
absence of the factual foundation necessary for invoking either.
45. The Court is conscious that the object of the statutory
provisions relating to independence and impartiality of arbitrators is to
ensure the integrity of the arbitral process. However, the safeguards
contained in Section 12(5) and the Seventh Schedule operate within
FAO (COMM) 231/2026 Page 17 of 18
the framework specifically prescribed by the A&C Act. The Court
cannot enlarge the categories of statutory ineligibility beyond those
contemplated by the legislature merely because a separate statutory or
regulatory provision may impose a restriction upon the person holding
the office of an arbitrator.
46. The learned District Judge, therefore, fell into error in treating
the alleged violation of Rule 11(3) as equivalent to an ineligibility
under Section 12(5) and in consequently holding that the absence of a
written waiver rendered the Award void.
47. It is also pertinent to note that the learned District Judge had
considered the other grounds raised by the Respondent in the Section
34 Petition, including the objection relating to limitation, the objection
concerning the period for which the claim could be entertained, and
the challenge based on appreciation of evidence. The said grounds
were rejected by the learned District Judge. No challenge to the
findings recorded on these grounds has been raised by the Appellant
in the present Appeal. The said findings, therefore, remain
undisturbed.
48. Thus, the only ground on which the learned District Judge
ultimately set aside the Award was the finding relating to the alleged
de jure inability of the learned Sole Arbitrator under Rule 11(3) of the
Service Rules. Having found the said finding to be unsustainable for
the reasons set out hereinabove, there remains no other ground on
which the Award stands set aside in the Impugned Judgment.
FAO (COMM) 231/2026 Page 18 of 18
CONCLUSION:
49. In view of the foregoing discussion, the present Appeal is
allowed. The finding of the learned District Judge that the learned
Sole Arbitrator was de jure unable to act as an arbitrator on account of
Rule 11(3) of the Service Rules is set aside. Consequently, the
judgment dated 19.05.2026, insofar as it sets aside the Award dated
28.02.2024 on the aforesaid ground, is also set aside.
50. The findings recorded by the learned District Judge on the
other grounds raised by the Respondent in the Section 34 Petition
have not been assailed in the present Appeal and are, therefore, left
undisturbed.
51. Since the aforesaid finding regarding the alleged de jure
inability of the learned Sole Arbitrator was the only ground on which
the Award came to be set aside, the Award dated 28.02.2024 passed
by the learned Sole Arbitrator stands restored.
52. The pending application stands closed.
ANIL KSHETARPAL , J.
SHAIL JAIN, J.
SEPTEMBER 28, 2026
jai/shah
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