Introduction

The Madras High Court has delivered a landmark ruling emphasizing that natural justice must be followed in all arbitration proceedings — whether conducted by professional arbitrators or respected family elders.

This judgment arises from a dispute between two brothers resolved by a family-appointed arbitral panel. The decision reinforces that fairness, transparency, and equal opportunity to be heard are non-negotiable in arbitration under Indian law.

Case Background

A family dispute between two brothers was referred to a panel of elder family members acting as arbitrators.
However, one party argued that the process deprived them of:

• Proper notice

• Fair chance to present their case

• Opportunity to counter the other side

This led them to challenge the arbitral award before the High Court.

Court’s Observation

Justice N. Anand Venkatesh noted that Section 34(2)(a)(iii) of the Arbitration and Conciliation Act, 1996 explicitly mandates:

Every arbitral tribunal must provide a fair opportunity to be heard and maintain impartiality.

Failure to adhere to natural justice can result in the arbitral award being set aside.

Key Takeaways from the Judgment

Family Arbitration Not Exempt from Law

Even if arbitrators are elders or respected family members, they must comply with legal standards.

Mandatory Principles

Parties must receive:

• Proper notice of hearings

• Opportunity to present evidence

• Chance to rebut the opposing party’s claims

Fair Procedure = Valid Award

If a tribunal fails to observe due process, the award can be struck down — regardless of the arbitrators’ status or intent.

Conclusion

This ruling strengthens the integrity of arbitration in India. The Madras High Court made it clear:
No tribunal — traditional or formal — can bypass natural justice.
Every party deserves a fair, transparent, and impartial process.