Karnataka HC: Arbitrator Can't Be Unilaterally Appointed

Imagine someone borrows money to buy a car and promises to pay it back.

If they die, the company that lent the money can't just pick their own person to decide what happens to the car.

A court in Karnataka, India, said that's not allowed.

A finance company tried this, but the court ruled that the company can't just choose an arbitrator (a neutral person) without the other side's agreement.

The judge found the company's arbitrator acted improperly, even before properly being appointed.

Now, police will investigate how the company took the car.

The court wants to ensure fairness and prevent companies from abusing the rules.