124. The doctrine of bias as evolved in English and Indian law
emphasizes independence and impartiality in the process of
adjudication to inspire the confidence of the public in the
adjudicatory processes. Although Section 12 deals with the quality
of independence and impartiality inherent in the arbitrators, the
provision’s emphasis is to ensure an independent and impartial
arbitral process.
***
169. In view of the above discussion, we conclude that:
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a. The principle of equal treatment of parties applies at all
stages of arbitration proceedings, including the stage of appointment
of arbitrators ;
b. The Arbitration Act does not prohibit PSUs from empanelling
potential arbitrators. However, an arbitration clause cannot
mandate the other party to select its arbitrator from the panel
curated by PSUs;