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Denel(Propritary Limited) vs Bharat Electronics Ltd.& Anr on 10 May, 2010

7. It is further the Award is also opposed to the prevalent law in India as it is directly in violation of and contrary to the law laid down by the Hon'ble Supreme Court of India in (2010) 6 Supreme Court Cases 394 (Denel (Proprietary) Limited vs. Bharat Electronic Limited and another). The Award is, therefore, vitiated and is liable to be set aside on this ground alone. At the time of entering into the contract, from which the arbitration dispute arose, the plaintiff did not have any effective or meaningful choice but was compelled to sign and execute the contract and thereby accept the provisions relating to the appointment and constitution of an Arbitral Tribunal in the manner specified in the contract. The plaintiff was, by virtue of the inequal bargaining power and predominant powers of the defendant without being relating to constitution of the Arbitral Tribunal. Consequently, such terms of the contract that provided for constitution of an Arbitral Tribunal comprising the employees of the defendant as Arbitrators without any representation or an Arbitrator from the side of the plaintiff would be rendered unconstitutional, unjustified, illegal and opposed to the public law of India. Such a clause would be void and unenforceable. Resultantly, the Award passed by such Arbitral Tribunal is wholly arbitrary, unfair, inequitable and suffers from the vice of bias to the detriment of the plaintiff. The Award is, therefore, liable to be set aside.
Supreme Court of India Cites 11 - Cited by 17 - H L Dattu - Full Document
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