Jul 31, 2019

Supreme Court on Ineligibility to be Appointed as Arbitrators

The Supreme Court of India (‘SC’) had previously, in the matter of TRF Limited v. Energo Engineering Projects Limited[1] (‘TRF’) held that a person, who is ineligible to be appointed as an arbitrator under Section 12(5) of the Arbitration and Conciliation Act, 1996 (‘Arbitration Act’), cannot appoint an arbitrator in his or her stead. By its decision dated April 16, 2019,[2] the SC has extended the applicability of its decision in TRF and ruled that parties may place reliance on the decision in TRF, even if such proceedings were initiated prior to the decision in TRF, but after Section 12(5) of the Arbitration Act came into force on October 23, 2015.

[1] (2017) 8 SCC 377. [2] Bharat Broadband Network Limited v. United Telecoms Limited, 2019 SCC Online SC 547.

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