ORDER (Oral)

(Video-Conferencing)

C. Hari Shankar, J.

O.M.P. (T) (COMM.) 29/2021

1. This petition essentially challenges the unilateral appointment of the arbitrator by the respondent vide a communication dated 23rd January, 2020. By the said communication, the respondent NDMC appointed a retired IAS Officer to arbitrate on the disputes between the petitioner and the respondent.

2. The appointment of the arbitrator by NDMC is in line with Clause 25 of the Agreement between the parties, which envisages arbitration by an arbitrator to be appointed by the Chairperson, NDMC. However, in the wake of decisions of the Supreme Court in Bharat Broadband Network Ltd v. United Telecoms Ltd., (2019) 5 SCC 755, Perkins Eastman Architects DPC v. HSCC (India) Ltd., (2020) 20 SCC 760 and TRF Limited v Energo Engineering Project Limited, (2017) 8 SCC 377, the right to appoint the arbitrator cannot be unilaterally conferred on any one party to the Agreement.

3. As such, the appointment of the arbitrator vide the aforesaid letter dated 23rd January, 2020 cannot sustain in law. It has necessarily to be set aside.

4. Learned Counsel for the parties are agreeable to the matter being referred