VidhiSangh

Supreme Court of India · 04/01/2022

ELLORA PAPER MILLS LIMITED versus THE STATE OF MADHYA PRADESH

[2022] 16 S.C.R. 399 · 2022 INSC 11

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Court held that the State-officer members of the Stationery Purchase Committee were ineligible to continue as arbitrators under Section 12(5) read with the Seventh Schedule. Although the tribunal had been constituted before the 2015 amendment, a prolonged stay and absence of further steps meant that its arbitration proceedings could not technically be said to have commenced. The Court rejected reliance on the old contractual arrangement, set aside the High Court’s refusal to replace the tribunal and appointed Justice Abhay Manohar Sapre as arbitrator. Mere participation did not constitute the required express written waiver.

Issues

  1. Whether the State-officer arbitral tribunal could continue under the earlier contractual arrangement in the circumstances of the prolonged stay.
  2. What form of waiver was required to overcome Section 12(5) ineligibility.

Provisions considered

Held

Result

Appeal allowed; High Court order set aside; replacement application allowed and Justice Abhay Manohar Sapre appointed arbitrator; parties to appear within four weeks; no costs.

Judgment PDF: Supreme Court of India, [2022] 16 S.C.R. 399.