Award Passed By Improperly Appointed Arbitrator Is Non-Est In Law And Invalid: Delhi High Court
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Award Passed By Improperly Appointed Arbitrator Is Non-Est In Law And Invalid: Delhi High Court

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The Delhi High Court bench of Justice Jasmeet Singh has held that it is settled law that the Arbitrator is a creature of the contract and has to function within four corners of contract. As per the Arbitration Clause, the General Manager/Business Unit Head was the named Arbitrator to adjudicate the disputes between the parties. However, the respondent on 20.12.2010 emphasized that in terms of clause 56 of the GCC, only the General Manager/Business Unit Head can be appointed as the Sole Arbitrator to adjudicate the disputes. Observations: The court noted that as per arbitration clause, the general manager/unit head was empowered to act as an arbitrator and in the absence of the general manager/unit head, managing director or chairman of the respondent company was empowered to appoint any other person as an arbitrator. Similarly, the Supreme Court in Ellora Paper Mills Ltd. v. State of M.P., held that “sub-section of Section 12 lays down that notwithstanding any prior agreement to the contrary, any person whose relationship with the parties or counsel or the subject-matter of the dispute falls under any of the categories specified in the Seventh Schedule, he shall be ineligible to be appointed as an arbitrator.” While applying the above ratio to the facts of the present case, the court observed that after the amendment act of 2015, the employee of the respondent could not act as an arbitrator in view of section 12 read with schedule 7 of the Arbitration Act therefore the named arbitrator could not be allowed to continue.

History of this topic

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1 day, 13 hours ago
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5 days, 16 hours ago
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Trending News
4 months ago
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