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Showing contexts for: arbitration act section 12 in M/S.Prime Store vs /69 on 20 April, 2023Matching Fragments
19. The first principle of natural justice is ‘nemo judex in causa sua’, which means ‘no man can be a judge in his own cause’. This principle intends to avoid any ‘reasonable apprehension of bias’ that may arise during any judicial process. Section 12 of the Arbitration and Conciliation Act, https://www.mhc.tn.gov.in/judis Arb.O.P.(Com.Div.) Nos.257 of 2021 and Arb.O.P(Com.Div).No.209 of 2022 1996 lays down provisions for the appointment of an Arbitrator and conditions where the appointment may be valid or invalid.
21. Section 12(5) of the Arbitration and Conciliation Act, 1996 was amended to incorporate two separate schedules into the Act. The newly incorporated Fifth Schedule provides for factors as to whether there are circumstances which give rise to justifiable suspicions ‘as to an arbitrator’s independence or impartiality,’ and Seventh Schedule sets out the ‘categories of individuals ineligible to be nominated as arbitrators.
https://www.mhc.tn.gov.in/judis Arb.O.P.(Com.Div.) Nos.257 of 2021 and Arb.O.P(Com.Div).No.209 of 2022
27. In its landmark judgment in “Perkins Eastman Architects DPC & Anr. v. HSCC (India) Ltd” reported in 2019 SCC Online SC 1517, the Hon'ble Supreme Court has settled the position of unilateral appointment of Sole arbitrators by holding that Unilateral appointment of the arbitrator shall be vitiated by Section 12(5) of the Arbitration and Conciliation Act, 1996. It has been observed in paragraph Nos.16,17,18,20 and 21 as under:
“42.2. (b). A contravention of the Arbitration Act itself would be regarded as a patent illegality — for example if an arbitrator gives no reasons for an award in contravention of Section 31(3) of the Act, such award will be liable to be set aside.
60. In the present case as stated above, the appointment itself is not in accordance with the amended Section 12(5) of the Act and it is in contravention of the Arbitration Act and it would amount to patent illegality and hence, the present award passed by a disqualified Arbitrator, is liable to be set aside on the ground well.