UNION OF INDIA vs M/S PREMIER FILES LTD.

The Supreme Court held that the appointment of a lawyer Arbitrator by the High Court violated clause 25 of the arbitration agreement, which mandated that the Arbitrator be appointed by the competent authority. The Court noted that an Arbitrator had already been appointed by the competent authority prior to the High Court's order, making the latter's appointment unjustified. Consequently, the Court set aside the High Court's order and restored the appointment of Shri S.C.Padhi as the sole Arbitrator, directing him to pass a reasoned award within six months as per the Arbitration and Conciliation Act, 1996, specifically under Section 11(6).