LAWS(DLH)-2017-2-70

HCL INFOTECH LIMITED Vs. MAHANAGAR TELEPHONE NIGAM LIMITED

Decided On February 08, 2017
Hcl Infotech Limited Appellant
V/S
MAHANAGAR TELEPHONE NIGAM LIMITED Respondents

JUDGEMENT

(1.) The petitioner has filed the present petition under Sec. 11 of the Arbitration and Conciliation Act, 1996 (hereafter 'the Act'), inter alia, praying that an arbitrator be appointed to adjudicate the disputes between the parties.

(2.) Mr. Nayar, learned senior counsel appearing for the petitioner submits that although the arbitrator has been appointed on 07.10.2016, he is an ex-employee of the Government of India, Department of Telecommunication and, therefore, ineligible to act as such, by virtue of the provisions of Sec. 12(5) read with Seventh Schedule to the Act. He contends that, accordingly, the mandate of the arbitrator must be declared to be terminated and an independent arbitrator may be appointed in his place.

(3.) Mr. Sikri, learned counsel for the respondent has countered the aforesaid submission. He submits that the challenge as to the eligibility of an arbitrator or questions as to whether there are justifiable doubts as to his independence and impartiality must, in the first instance, be considered by the arbitrator so appointed and the discipline of Sec. 13 of the Act must be followed.