In Brief
The Supreme Court dismissed special leave petitions challenging the High Court's appointment of an alternative arbitrator to replace the contractually agreed Chairman of a co-operative dairy society. The petitioners argued the amendment introducing arbitrator eligibility restrictions (Section 12(5) and Seventh Schedule) did not apply to pre-amendment agreements. The Court held that the disqualification provisions apply regardless of the agreement's date, as independence and impartiality are fundamental principles overriding party autonomy. The Chairman, being an elected director with controlling influence, fell within disqualification categories. Once ineligible, the arbitrator automatically lost his mandate, and the High Court was justified in appointing an eligible substitute under Section 11.
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