Arbitration Is 'Arbitrator-Centric', Making The Right Choice Of Arbitrator Can Ease Problems For Parties: CJI Sanjiv Khanna

The Supreme Court today (January 17) expressed the importance for arbitrating parties to choose their arbitrator wisely as the correct choice may ease several complexities that the parties may face in their dispute. 

The CJI, Justice Sanjiv Khanna during the hearing of an arbitration matter opined,

"Arbitration is always Arbitrator centric. Normally if you make the right choice of arbitrator...we normally underestimate the question of choice of arbitrator, if you introspect you will get a lot of answers" 

However, Solicitor General Tushar Mehta, appearing for the Roads and Building Department (petitioner), reverted: "The Government does not have a level playing field; I'll leave it at that."

CJI, seemingly disagreeing, expressed how the field of arbitration has evolved over the period of time. He stressed that arbitration is an adjudication mechanism in itself and having the right choice of arbitrator would minimize several issues. 

"I don't think so, let me also put it- when we joined the bar we all did arbitration, no seniors (advocates) would join. At that time the biggest Arbitrations were (inaudible) and railways...all of them were being handled by your in-house arbitrators belonging to all the three (institutions)...Because it's a one-stop adjudication, the choice of arbitrator is extremely important, if you make the right choices, you will find that a lot of problems are taken care of." 

The bench of CJI Sanjiv Khanna and Justices Sanjay Kumar and KV Viswanathan was hearing the Department's challenge to the order of the Gujarat High Court which had appointed an arbitrator under Section 11 of the Arbitration and Conciliation Act 1996. The bench ultimately dismissed the challenge. 

The High Court had noted that the parties namely, Road and Buildings Department, Government of Gujarat and M/S Intercontinental Consultant and Technocrats Pvt Ltd were not able to mutually agree on the appointment of an arbitrator to redress their commercial disputes. 

It had also rejected the objections raised by the State Government regarding the nature of the dispute and the scope of the appointment of an arbitrator under Section 11.

Notably, the Apex Court in a recent constitutional bench decision held that the principle of equal treatment of parties applies at all stages of the arbitration proceedings, including the stage of the appointment of arbitrators. It further ruled that unilateral appointment clauses in public-private contracts are violative of Article 14 of the Constitution.

Case Details : ROADS AND BUILDING DEPARTMENT vs. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LIMITED | SLP(C) No. 001622 - 001623 / 2025