In Brief
An Austrian steel company challenged the constitution of an arbitral tribunal for disputes with Delhi Metro Rail Corporation (DMRC) arising from a rail supply contract. The company objected that DMRC's panel of arbitrators—comprising retired government engineers—violated the independence requirements of Section 12(5) of the Arbitration and Conciliation Act, 1996 (as amended 2015). The Supreme Court held that retired government officers are not ineligible merely by virtue of prior government service unless they have direct connection with the specific party (DMRC). The Court dismissed the petition, finding that the panel did not contravene conflict-of-interest provisions, and directed DMRC to broaden its future panels to include private-sector professionals and diverse expertise.
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