In Brief
A dispute arose between Rajasthan Small Industries Corporation and a contractor over transportation of containers. The parties' contract specified that disputes should be arbitrated by the Corporation's Managing Director. When arbitration was delayed, the contractor sought appointment of an independent arbitrator in the High Court. The Supreme Court held that the 2015 Amendment Act restricting employee arbitrators does not apply to proceedings commenced before it came into force. An employee arbitrator does not inherently lack impartiality, and a party who voluntarily participated and consented cannot later challenge the arbitrator's appointment. The Court set aside the High Court's appointment of a new arbitrator and remitted the matter to the Managing Director to complete arbitration within four months.
The lawyer headnote and full judgment text are available to registered users.