In Brief
A Canadian engineering firm contracted with Mumbai's municipal corporation in 1995 for sewerage system modernization. Disputes over unpaid dues led to arbitration in 2005. The contract required the two arbitrators to jointly appoint a presiding arbitrator within 30 days, with the ICSID Secretary-General available as a backup. The presiding arbitrator was appointed after 30 days. The municipal corporation challenged the arbitration tribunal's constitution, arguing only ICSID could appoint after the deadline. The Supreme Court upheld the award, holding that the ICSID clause was optional, not mandatory. The tribunal's interpretation was plausible, and the municipal corporation had waived objections by participating in proceedings without timely protest.
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