Supreme Court applies Section 12 (5) of the Arbitration Act to an arbitral tribunal (comprising officers of a party to the arbitration as members) constituted much before the Amendment Act, 2015 and declares them ineligible to continue as arbitrators
In a recent case of Ellora Paper Mills Limited Vs the State of Madhya Pradesh (Civil Appeal No. 7697 OF 2021 decided on January 4, 2022), the Supreme Court applied Section 12 (5) read with Seventh Schedule of the Arbitration Act, 1996, to declare an arbitral tribunal, constituted in the year 2000, ineligible to act/continue as arbitrators. Supreme Court relying upon its earlier judgments in TRF Limited v. Energo Engineering Projects Limited:(2017) 8 SCC 377, Bharat Broadband Network Limited v. United Telecoms Limited: (2019) 5 SCC 755 and Jaipur Zila Dugdh Utpadak Sahkari Sangh Limited v. Ajay Sales & Suppliers: 2021 SCC On Line SC 730 rejected the plea of the Respondent—State of MP—that Section 12(5) read with Seventh Schedule, which has been inserted in the statute by Amendment Act, 2015 w.e.f. October 23, 2015 will not be applicable retrospectively.
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