Trf Ltd. vs Energo Engineering Projects Ltd. & Anr. on 17 February, 2017
The reason is clear that whatever advantage a party may derive by
nominating an arbitrator of its choice would get counter-balanced
by equal power with the other party. But, in a case where only one
party has a right to appoint a sole arbitrator, its choice will always
have an element of exclusivity in determining or charting the
course for dispute resolution. Naturally, the person who has an
interest in the outcome or decision of the dispute must not have the
power to appoint a sole arbitrator. That has to be taken as the
essence of the amendments brought in by the Arbitration and
Conciliation (Amendment) Act, 2015 (3 of 2016) and recognised
by the decision of this Court in TRF Ltd. [TRF Ltd. v. Energo
Engg. Projects Ltd., (2017) 8 SCC 377 : (2017) 4 SCC (Civ) 72]."