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Is an arbitrator biased if fees are increased unilaterally against wishes of one party? Supreme Court to decide

The appellant in the present case challenged a Madras High Court judgment dated January 24 on the ground that the High Court had failed to terminate the mandate of an arbitral tribunal owing to apprehensions of bias after the arbitrator had unilaterally increased their fees. The appellant had objected to the increase in fees of the arbitrator.

During the hearing, Additional Solicitor General N Venkataraman, appearing for the appellant, argued that if an arbitrator unilaterally increases their fees and the same is opposed by one of the parties, then there is likelihood of bias in the mind of the arbitrator against such a party. He relied on the apex court’s judgments in Union of India v Singh Builders Syndicate and Oil and Natural Gas Corporation Ltd v. Afcons Gunanusa JV to buttress his case.

Source: Barandbench

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