The Delhi High Court on March 30, 2022 in the matter of Ruia Exports & Another v. Moneywise Financial Services Private Limited & Others. expressed a prima facie opinion that the participation of any party is not sufficient to infuse life to arbitral proceedings if the award is void ab initio on the ground of ineligibility of an arbitrator.

The Court in the aforesaid decision had held that the arbitral award was void ab initio since it was rendered by an arbitrator unilaterally appointed by the parties, which is impermissible.

In the instant case, the counsel appearing for the respondent did not dispute that unilateral appointment of an arbitrator is impermissible in view of the decision of the Supreme Court in the case of Perkins Eastman Architects DPC & Anr. v. HSCC (India) Ltd. However, it was submitted that since the petitioner had participated in the arbitral proceedings, it was precluded from raising objections on this ground.

The Court was of the view that the question was a substantial one which required consideration, hence posted the matter for further hearing, while staying enforcement of impugned award.

“In view of the above, the enforcement of the impugned award is stayed” the Supreme Court ordered