This week, we have analyzed the Delhi High Court’s ruling in Ashiana Infrahomes Pvt. Ltd. & Ors v. Adani Power Ltd.
In Ashiana Infrahomes, the Petitioner had challenged the appointment of the sole arbitrator on the grounds that in view of the Arbitration and Conciliation (Amendment) Act, 2015 (‘2015 Amendment’) the arbitrator appointed was de jure unable to perform his functions as an arbitrator. Since the arbitration in the present case had been initiated prior to the 2015 Amendment, applicability of the 2015 Amendment to the arbitration was an issue to be decided by the Court.
After examining the factual aspects, the Court concluded that 2015 Amendment was applicable to the arbitration because the parties had agreed to be governed by Arbitration and Conciliation Act, 1996 “as amended up to date”. Thereafter, in view of Section 12(5) read with Seventh Schedule of the Arbitration and Conciliation Act, 1996 (as amended by the 2015 Amendment) the Court examined the jurisprudence on the principle of impartiality of arbitrator and terminated the mandate of the arbitrator appointed by the parties with directions to the Delhi International Arbitration Centre (‘DIAC’) to appoint a substitute arbitrator.
