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Supreme Court of India · 2019-04-16

BHARAT BROADBAND NETWORK LIMITED vs UNITED TELECOMS LIMITED

Citation / case number
SC 2018/1070
Court
Supreme Court of India
Petitioner
BHARAT BROADBAND NETWORK LIMITED
Respondent
UNITED TELECOMS LIMITED
Author
HON'BLE MR. JUSTICE ROHINTON FALI NARIMAN
Bench
HON'BLE MR. JUSTICE VINEET SARAN HON'BLE MR. JUSTICE ROHINTON FALI NARIMAN

Judgment text excerpt

The Supreme Court interpreted Section 12(5) of the Arbitration and Conciliation Act, 1996, clarifying that a Managing Director of a company cannot act as an arbitrator if the company is a party to the arbitration, as established in TRF Ltd. v. Energo Engineering Projects Ltd., (2017) 8 SCC 377. The Court held that any appointment made by such an ineligible person is null and void, reinforcing the principle of impartiality in arbitration. Consequently, the appointment of the arbitrator by the CMD of Bharat Broadband Network Ltd. was deemed invalid.

BHARAT BROADBAND NETWORK LIMITED vs UNITED TELECOMS LIMITED · Niyam