Corporate arbitration lawyer: as per amended Arbitration Act 2015, if the person cannot be appointed as arbitrator in view of 7th schedule, then, he cannot act as appointing authority for his nominee arbitrator.

Supreme Court of India

Justice R F Nariman

The arbitration act was amended by virtue of amending act of 2015 which came into force on 23rd of October 2015, in the case titled as "Bharat broadband network limited Versus United Telecom Limited", the supreme court has held that with effect from 23rd of October 2015, if the appointment of any person as arbitrator is not allowed as per seventh schedule of amending act, then, the said person also cannot act as appointing authority for his Nominee.

However, it was held that the parties by the express contract between them after the dispute has arisen, can accept the nomination of a person, who is not allowed to act as arbitrator as per schedule 7 of the amending act.

It was further held that for applicability of the said provisions the date of appointment has to be on or after the 23rd of October 2015. And in case there is any violation as aforesaid then the aggrieved Party can approach to the court under Section 14 of the Act for termination of the mandate of the arbitrator due to dejure inability.