Mcleod Russel India Limited & Anr vs Aditya Birla Finance Limited & Ors on 14 February, 2023
Bharat Broadband vs. United Telecoms; (2019) 5 SCC 755 : The
arbitration clause in the agreement provided for the arbitration to be
referred to the sole arbitration of the CMD of the appellant and if the
CMD is unwilling to act as such, then to the sole arbitration of some
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other person appointed by the CMD. There was also no agreement in
writing under the proviso to section 12(5) and more important, the party
who had unilaterally nominated sought termination of the mandate.
Moreover, the appellant Bharat Broadband filed a petition immediately
after the judgment in TRF. This would appear from paragraph 20 of the
Report which records that the Managing Director of the appellants was
not aware that the arbitrator could not appointed by the MD under
section 12(5) read with Seventh Schedule which only became clear after
the declaration of the law by the Supreme Court in TRF. The said
paragraph also notes that the moment the appellant came to know of the
invalidity of the arbitrator's appointment, it filed an application before
the sole arbitrator for termination of his mandate. The contract in this
case was also entered into before the amendment of 23.10.2015 and the
involved a persona designata with the power to nominate an arbitrator in
his place.