On December 16, 2025, the Delhi High Court made an important decision in the case between Shri BN Vishwanath & Anr. and Religare Finvest Limited & Ors., focusing on whether one side could choose the arbitrator alone.
The problem started with a loan agreement dated February 24, 2012, between the parties. Religare Finvest Limited, the other side, had picked a Sole Arbitrator to settle a disagreement under this agreement. However, Shri BN Vishwanath & Anr. said they didn't know about the arbitration proceedings until they got a notice on July 31, 2021.
A decision from the arbitration was made on July 22, 2019, in favor of the other side. Shri BN Vishwanath & Anr. challenged this decision, but their request was dismissed because it was filed too late.
Shri BN Vishwanath & Anr. argued that the choice of the Sole Arbitrator was not valid based on a Supreme Court decision, which said that a party with an interest in the outcome should not pick the arbitrator.
“A party who has an interest in the outcome of a decision in an arbitration proceeding must not have the power to appoint or to be a Sole Arbitrator in the said proceeding.”
The Delhi High Court, led by Justice Navin Chawla and Justice Madhu Jain, agreed with Shri BN Vishwanath & Anr. They said that one side picking the arbitrator was against public fairness and made the decision invalid.
“The unilateral appointment of the learned Sole Arbitrator, being bad in law, renders the entire proceeding without jurisdiction.”
The court canceled the Arbitral Award dated July 22, 2019, declaring it completely invalid from the start. This decision shows how important it is to have a fair and unbiased process when choosing an arbitrator.
