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C. HARI SHANKAR
Hll Lifecare Limited (hll) – Appellant
Versus
Employees State Insurance Corporation (esic) – Respondent
JUDGMENT
OMP (T) (Comm) 30/2022, IA 3465/2022 (Section 151 CPC for stay) and IA 3466/2022 (Section 151 CPC for exemption)
1. This petition, under Section 14 of the Arbitration and Conciliation Act, 1996 ("the 1996 Act"), seeks termination of the mandate of Mr. Jagmhan Lal, the arbitrator presently in seisin of the arbitral disputes between the Employee State Insurance Corporation (ESIC) and HLL Lifecare Limited (HLL), consequent to the ESIC having appointed him as a sole arbitrator by letter dated 3rd August, 2018.
2. The disputes between the parties arose out of a Turnkey Agreement Contract dated 21st January, 2010, between ESIC and HLL. Clause 20.6 of the agreement envisaged resolution of the disputes between the parties by arbitration and read thus:
"20.6 In case of any disputes or differences in connection with or arising out of this agreement the same shall be referred to the Sole Arbitrator to be appointed by the Director General, ESIC, New Delhi. The award of the sole Arbitrator shall be final and binding on both the parties."
3. Disputes having arisen between the parties, HLL wrote to ESIC on 29th May, 2018, invoking Clause 20.6 read with Clause 20.8 of the agreement and reques
The main legal point established in the judgment is the ab initio void nature of the arbitrator's appointment, as it was contrary to Section 12(5) of the 1996 Act. The court's decision was based on t....
The necessity for an express written waiver to validate an arbitrator's appointment under Section 12(5) of the Arbitration and Conciliation Act, 1996.
The main legal point established in the judgment is the requirement of an express agreement in writing to waive the applicability of Section 12(5) of the Arbitration and Conciliation Act, 1996.
An arbitrator's appointment violating Section 12(5) of the Arbitration Act without an express written waiver is invalid, rendering any adjudicated award void.
A unilateral appointment of an arbitrator from an ineligible party is void ab initio without an express written waiver of Section 12(5) of the Arbitration and Conciliation Act, which cannot be implie....
The appointment of an arbitrator must comply with Section 12(5) of the Arbitration & Conciliation Act, ensuring independence and impartiality, regardless of when the arbitration proceedings were init....
Arbitral Tribunal consisting of officers of State have become ineligible to become Arbitrators and to continue as Arbitrators.
The appointment of an arbitrator must comply with the Arbitration and Conciliation Act, particularly Section 12(5), which disqualifies certain individuals from serving as arbitrators.
Parties consenting to arbitration and participating without objection cannot later challenge the arbitral award based on alleged unilateral appointment of the arbitrator.
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