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Ineligible Arbitrator Can’t Nominate Another Arbitrator

In TRF Ltd. Vs Energo Engineering Projects Ltd., the Supreme Court held that once the arbitrator has become ineligible by operation of law, he cannot nominate another as an arbitrator.

“Once the infrastructure collapses, the superstructure is bound to collapse. One cannot have a building without the plinth,” said Justice Dipak Misra, who authored the judgment for the bench which held that, once the identity of the managing director as the sole arbitrator is lost, the power to nominate someone else as an arbitrator is obliterated.

The issue, the apex court was addressing was whether, if the managing director is disqualified to act as an arbitrator, is he deprived of his right to nominate an arbitrator who has no relationship with the respondent.

Article referred: http://www.livelaw.in/ineligible-arbitrator-cant-nominate-another-arbitrator-sc-read-judgment/

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