Published on: October 9, 2023 at 16:36 IST
Court: Supreme Court of India
Citation: Glock Asia-Pacific Ltd. v. Union of India (2023)
Honourable Supreme Court of India has held that Section 11(6) of the Arbitration and Conciliation Act, 1996 allows for the independent person to be appointed as an Arbitrator for adjudication of the dispute. It is held that the arbitration clause in Government Contracts cannot allow or enable a serving employee of the Union of India as the sole arbitrator which is against the violation of the fairness and transparency principles of the Arbitration.
21. In conclusion, the arbitration clause which authorises the Secretary, Ministry of Home Affairs, whose relationship with the Union of India is that of an employee, to nominate an officer of the Ministry of Law and Justice to act as a sole arbitrator, clearly falls within the expressly ineligible category provided in Schedule VII Para 1, read with Section 12(5) of the Act. As the grounds of challenge to the appointment of an arbitrator under Section 12(5) of the Act operate notwithstanding any prior agreement to the contrary, we cannot give effect to the appointment of an officer of the Ministry of Law and Justice as an arbitrator. The submission of the learned ASG in favour of such an appointment is therefore rejected.
Drafted By Abhijit Mishra