Chennai Metro Rail Ltd. Vs. Transtonnelstroy Afcons (JV) & Anr. – Supreme Court
October 21, 2023
Hon’ble Supreme Court held that:
(i) The court however underlined that in the next category where the person became ineligible to be appointed as arbitrator, there was no need for a challenge to be laid before the arbitrator. In such circumstances outlined in Section 12(5), the party aggrieved could directly approach the court under Section 14(1)(a).
(ii) The grounds of ineligibility which would apply at the appointment stage, would also continue during the proceedings by virtue of Section 12(2). In other words, if during the continuance of the proceedings, the arbitrator becomes subject to any eligibility condition outlying in the Fifth Schedule, the application for his removal on the grounds of justifiable doubts about his impartiality and independence, can be made.
(iii) Parliament’s conscious effort in amending the Act, because of the inclusion of the fifth schedule, as a disclosure requirement, as an eligibility condition [Section 12 (1)] and a continuing eligibility condition, for functioning [Section 12 (2)] and later, through Section 12 (5), the absolute ineligibility conditions that render the appointment, and participation illegal, going to the root of the jurisdiction, divesting the authority of the tribunal, thus terminating the mandate of the arbitrator, as a consequence of the existence of any condition enumerated in the seventh schedule, are to clear the air of any ambiguities. The only manner of escaping the wrath, so to say of Section 12 (5) is the waiver- in writing by the party likely to be aggrieved.
