Arbitrator to be replaced as per agreement between parties: SC

Setting aside an arbitral award under Article 142 of the Constitution of India, the Supreme Court of India recently held that the courts cannot replace the arbitrator in deviation of the terms of the agreement between the parties

The Court said, “When the parties have consciously agreed that the disputes or differences shall be referred to the Managing Director himself or his nominee for sole arbitration and having participated in the arbitral proceedings before arbitrator for quite some time, the respondent cannot turn round and seek for appointment of an independent arbitrator.”

The Court also clarified that the appointment of substitute arbitrator has to be in accordance with the agreement between the parties. Thus, even appointment of substitute arbitrator has to be done in accordance with the original arbitration agreement.

The Court reaffirmed that Arbitration and Conciliation Act, 1996 as amended in 2015 would not apply to arbitrations commenced prior to amendment in 2015.

About DSLegal

A full service international law firm based in New Delhi with an office in Chicago, USA.
This entry was posted in Administrative Law, Arbitration Conciliation Law, Consumer Law, Contract Law, General Law, International Law, mediation and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s