Anuj Kumar vs M/S Franchise India Brands Limited on 24 April, 2023
28. The ratio of Mc Leod Russel India Limited and Anr. v. Aditya
Birla Finance Limited (Supra) is that when there is a unilateral
appointment it has to be seen as per the facts and circumstances of the
case. Mere unilateral appointment cannot nullify the appointment of the
arbitrator. The Court held there is a difference between the fact that when
one of the manager or key managerial personnel of one of the parties is
appointed as the arbitrator and when one of such personnel of one of the
party appoints an arbitrator unilaterally. Moreover, in the second situation
where one of the party unilaterally appoints the arbitrator, the irregularity
can be waived by way of an express agreement as per the proviso under
Section 12 (5) of the Act.