DELHI HIGH COURT: ARBITRAL AWARD CANNOT BE CHALLENGED ON GROUND OF BIAS OF ARBITRATOR IF NO CHALLENGE WAS MADE DURING ARBITRAL PROCEEDINGS

The Delhi High Court in the case AlliedDynamic JV v. Ircon International Ltd observed and has held that an arbitral award cannot be challenged which being on the ground of bias of arbitrator if no challenge to bias was made during the pendency of arbitral proceedings.

The bench headed by Justice Pratibha M. Singh in the case observed and has held that has fully participated in the arbitral proceedings without raising any challenge to the jurisdiction of the tribunal on ground of bias, cannot challenge the award directly under Section 34 of the Arbitration and Conciliation Act.

The court in the case held that in an arbitration that has commenced before the 2015 amendment, such a conduct by a party would constitute a waiver under Section 4 of the Arbitration and Conciliation Act.

Facts of the Case:

The parties entered into an agreement dated December 01, 2010. As per the terms of the agreement, the petitioner was to carry out certain works for the respondent.

The total project work was to be completed within 11 months from October 25, 2011.

There were certain delays in the completion of the project work. Thus, the petitioner raised certain claims against the respondent claiming payment for the extended stay on the site.

The arbitrator was appointed to adjudicate the dispute between the parties.