In Brief
A dispute arose between Rajasthan Small Industries Corporation Limited and a contractor regarding transport and handling of containers. An arbitration clause in their 2000 agreement provided that disputes be referred to the Managing Director or his nominee. After years of delay with multiple arbitrators, the contractor sought appointment of an independent arbitrator under the Arbitration Act. The High Court appointed a retired judge. The Supreme Court held that parties are estopped from challenging an agreed-upon arbitrator after voluntarily participating in proceedings, and that the 2015 Amendment Act disqualifying employee-arbitrators cannot apply retroactively. However, to ensure complete justice and prevent further litigation, the Court set aside the hastily-passed award and remitted the matter to the Managing Director with directions to afford both parties full opportunity and pass the award within four months.
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