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The appointment of Arbitrator is not only starting step in an Arbitration process, but also one of the most crucial step. This is so because the whole effectiveness of the Arbitration process revolves around the fact of whether or not the Arbitration panel appointed is independent and impartial. The Supreme Court on 16th May 2019in Bharat Broadband Network Limited case (BBNL), dealt with the interpretation of Section 12(5) of the Arbitration and Conciliation Act, 1996 (Act) and host of other related provisions. While doing so, the Supreme Court also analysed three earlier landmark judgments dealing with Impartiality and Independence of Arbitrators.
Before analysing judgment passed in BBNL case, it is essential to have a close look of brief factual matrix concerning this case:
The Supreme Court allowed the appeal and set aside the judgment passed by Delhi High Court, thereby, terminating the mandate of Sole Arbitrator. Apex Court further directed Delhi High Court to appoint substitute arbitrator with consent of both parties.
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