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Showing contexts for: arbitration section 12 in Security Hitech Graphics Private ... vs Lmi India Private Limited on 20 December, 2022Matching Fragments
Thus, the appointment of Arbitrator, appointed in aid of M.S.M.E.D. Act, cannot be challenged merely on the ground that was appointed by Delhi Arbitration Centre, giving a go by to the provisions of Section 18(4) of M.S.M.E.D. Act, 2006.
Question is, therefore, pertinent to raise, whether disclosure of impartiality or independence of Arbitrator in aid of Section 12 of Arbitration and Conciliation Act, 1996, is compulsory to dispel the doubt of any of the parties to the arbitration proceedings, even if grounds for challenge, set out in application under Section 16 of Arbitration Act, 1996 may not have direct and proximate relationship with the grounds disclosed in 5th Schedule.
Regarding the applicability of Section 12 of Arbitration and Conciliation Act, 1996 over the instant arbitration proceedings, the Arbitrator of which was appointed under the provisions of M.S.M.E.D. Act, the provisions laid down in Section 18 of M.S.M.E.D. Act, may be profitably referred, which maybe reproduced as hereinbelow:
"18. Reference to Micro and Small Enterprises Facilitation Council. -
(1) Notwithstanding anything contained in any other law for the time being in force, any party to a dispute may, with regard to any amount due under section 17, make a reference to the Micro and Small Enterprises Facilitation Council.
The appointment of the Arbitrator being subject to the disclosure of Schedule 6th of Arbitration Act, 1996, can never be construed to be coming in the way against the spirit of Section 24 of M.S.M.E.D. Act. The overriding provisions of Section 15 to 23 of M.S.M.E.D. Act, thus cannot be deemed to be an absolute bar making Section 12 of Arbitration Act, 1996 inapplicable in case of arbitration, conducted under the M.S.M.E.D. Act, with appointment of Arbitrator, thereby not strictly prohibiting Arbitrator from making disclosure of his independence and impartiality to the arbitration proceedings in aid of Schedule 6th of Arbitration and Conciliation Act.
It may be put in a simpliciter way that provisions of Section 24 of M.S.M.E.D. Act giving overriding effect of Section 15 to 23 can never be construed to be an absolute bar to the disclosure of Arbitrator, as regards his independence and impartiality in aid of Schedule 6th of Arbitration and Conciliation Act, 1996.
The appointment of Arbitrator being always subject to the disclosure of declaration made under Section 12 of Arbitration Act, 1996, with respect to independence and impartiality of the Arbitrator, nothing would, however, prevent the Arbitrator, though appointed under the M.S.M.E.D. Act, from making a declaration as to his impartiality and independence doing adherence to Schedule 6th of 1996 Act in aid of Section 12(1)(2) of Arbitration and Conciliation Act, 1996.