Controversy surrounding Excessive Fees: Rajasthan High Court terminates mandate of Arbitrator

Murali Krishnan January 5 2019

The Rajasthan High Court has terminated the mandate of an arbitrator due to a long drawn controversy which had originated because of the arbitrator charging excessive fees.

A single judge Bench of Arun Bhansali held that the controversy due to the petitioner challenging the arbitrator’s mandate and the commercial court consequently reducing the arbitrator’s fees has rendered the arbitrator de jure/de facto unable to perform his functions effectively. Hence, it warranted that his mandate be terminated under Section 14(1)(a) of the Arbitration . . .

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