Section 12(5) of the Arbitration and Conciliation Act is Mandatory: SC

The Supreme Court in the case of ‘Haryana Space Application Centre Vs Pan India Consultancy Pvt Ltd’ held that section 12(5) of the Arbitration and Conciliation Act is mandatory. Section 12(5) of the Act deals with the ineligibility of a person for the appointment as an Arbitrator.

The Supreme Court was entertaining the plea filed by the ‘Haryana Space Application Centre’ against the order of the Haryana High Court. The Haryana High Court due to the Covid-19 granted the extension of 4 months to the parties to conclude the arguments within 3 months. And, the High Court also granted the time to the Arbitral Tribunal to pass the award.

The Judges of the Supreme Court while entertaining the plea notes that the appointment of the Principal Secretary of the Haryana as nominee Arbitrator for the “Haryana Space Application Centre’ is invalid. The point for holding the appointment invalid is that the said officer is the nodal officer of the Haryana Government hence invalid under section 12(5) of the Arbitration and Conciliation Act.

Section 12(5):

The section states that, in spite of any agreement between the parties, any person whose relationship with the parties or counsels falls under the seventh schedule, the appointment will be invalid.

Seventh Schedule:

Item 5 of the schedule talks about the arbitrator’s relation with the parties or counsels. It states that the appointment of the Arbitrator will be invalid if:

  • The arbitrator is manager or director or part of the management or
  • The arbitrator has an influencing relation with either party to the dispute.

Read more article @ advocatetanwar.com

 

Leave a Reply

Your email address will not be published. Required fields are marked *

This field is required.

This field is required.

Disclaimer

The following disclaimer governs the use of this website (“Website”) and the services provided by the Law offices of Kr. Vivek Tanwar Advocate & Associates in accordance with the laws of India. By accessing or using this Website, you acknowledge and agree to the terms and conditions stated in this disclaimer.

The information provided on this Website is for general informational purposes only and should not be considered as legal advice or relied upon as such. The content of this Website is not intended to create, and receipt of it does not constitute, an attorney-client relationship between you and the Law Firm. Any reliance on the information provided on this Website is done at your own risk.

The Law Firm makes no representations or warranties of any kind, express or implied, regarding the accuracy, completeness, reliability, or suitability of the information contained on this Website.

The Law Firm disclaims all liability for any errors or omissions in the content of this Website or for any actions taken in reliance on the information provided herein. The information contained in this website, should not be construed as an act of solicitation of work or advertisement in any manner.