Arbitration cannot result in arbitrary measures: SC
Arbitration may sound like “arbitrary,” but it cannot result in an arbitrary measure, the Supreme Court has said, scrapping an arbitral proceeding after the tribunal went ahead with sweeping interim orders despite a clear objection to its appointment and allegations of links with one of the parties
The Supreme Court has ruled that arbitration cannot result in arbitrary measures, overturning an arbitral proceeding that had issued sweeping interim orders. The court dismissed the arbitration proceedings after finding that there was no evidence of the appellants' consent to the appointment of the tribunal, and that the tribunal members had close links with one of the parties.
The orders passed by the tribunal, which included freezing bank accounts, allowing the respondent bank to take possession of properties and directing the transfer of bank deposits, were deemed arbitrary. The court also appointed a new arbitrator to resolve the dispute.
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