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190422 ELP Arbitration Weekly Update

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This week, we bring to you an analysis of the Supreme Court’s decision in Bharat Broadband Network Limited v. United Telecoms Limited. In the present case, the Supreme Court held that an arbitrator, appointed by a person who is ineligible to act as an arbitrator as per the provisions of section 12(5) read with the Seventh Schedule of the Arbitration and Conciliation Act, 1996 (as amended by Arbitration and Conciliation (Amendment) Act, 2015 (Amendment Act)) (Act), is de jure unable to perform his functions and that the mandate of such arbitrator automatically terminates. The Supreme Court also held that in such an event, the parties are to appoint a substitute arbitrator under section 14 of the Act or if there remains any controversy between them regarding the appointment of a substitute arbitrator, approach courts for appointment of a substitute arbitrator.

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