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M/S Lanco-Rani(JV) vs. M/S National Highways Authority of India

Original Miscellaneous Petition (Commercial) · 2026:DHC:7887Decided 2 Sept 2026New Delhi Bench
O.M.P. (COMM) 145/2017CNR: DLHC011352162017
Justice Om Prakash Shukla

Background

The petitioner challenged a 2008 arbitral award concerning a highway construction contract, alleging that NHAI's nominated arbitrator was biased because he was employed by a consulting firm (CES) that had, in other unrelated projects, worked as a consultant/engineer for NHAI, even though CES had no role in this particular project.

Decision Breakdown

The Court held that an arbitrator merely being employed by, or having some general professional relationship with, one party's frequent business partner does not by itself prove bias: there must be something concrete, like direct involvement in the specific contract or a subordinate relationship to a decision-maker in that dispute. Since the petitioner showed nothing beyond a general, indirect commercial connection, and no evidence that the arbitrators were actually influenced, the bias challenge failed and the award was upheld.

Lesson Learnt

A vague suspicion that an arbitrator might be too close to one side isn't enough to overturn an award: a party must point to solid, specific facts showing real influence over that particular dispute, not just a general professional connection.

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