M/S. VOESTALPINE SCHIENEN GMBH versus DELHI METRO RAIL CORPORATION LTD.

M/S. VOESTALPINE SCHIENEN GMBH versus DELHI METRO RAIL CORPORATION LTD.

The persons empanelled by DMRC are not covered by the ineligibility entries of the Fifth or Seventh Schedule, as they are not employees, consultants, advisors, or otherwise related to DMRC. A panel restricted to engineers of government/PSU is not per se biased or ineligible. Dismissal of petition for appointment; direction for DMRC to prepare a broad-based panel including engineers from the private sector and persons with legal background.

Parties
Petitioner: M/s. Voestalpine Schienen GmbH; Respondent: Delhi Metro Rail Corporation Ltd.
Jurisdiction
India
Judgment Date
10 February 2017
Procedural Posture
Arbitration Petition (civil) No. 50 of 2016 / Original Jurisdiction Decision on Appointment of Arbitral Tribunal
Outcome
Petition dismissed; two weeks granted to petitioner to nominate arbitrator from DMRC panel; DMRC directed to prepare broad-based panel within two months.
Legal Topics
Appointment of Arbitrators, Independence and Impartiality, Panel of Arbitrators, Challenge to Arbitration Clause
Arbitration Law Appointment of Arbitrators Independence and Impartiality Panel of Arbitrators Challenge to Arbitration Clause

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 2 Authorities cited 14 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

M/s. Voestalpine Schienen GmbH

Petitioner

Delhi Metro Rail Corporation Ltd.

Respondent

Procedural Posture

Arbitration Petition (civil) No. 50 of 2016 / Original Jurisdiction Decision on Appointment of Arbitral Tribunal

Legal Issues

  1. 1 Whether the panel of arbitrators prepared by DMRC violates Section 12 of the Arbitration and Conciliation Act, 1996 regarding independence and impartiality
  2. 2 Whether persons empanelled (serving/retired engineers of government departments, PSUs) are ineligible to act as arbitrators under amended Section 12 and Seventh Schedule

Ratio Decidendi

The persons empanelled by DMRC are not covered by the ineligibility entries of the Fifth or Seventh Schedule, as they are not employees, consultants, advisors, or otherwise related to DMRC. A panel restricted to engineers of government/PSU is not per se biased or ineligible. Dismissal of petition for appointment; direction for DMRC to prepare a broad-based panel including engineers from the private sector and persons with legal background.

Court Disposition

Petition dismissed; two weeks granted to petitioner to nominate arbitrator from DMRC panel; DMRC directed to prepare broad-based panel within two months.

Orders

  • Petitioner to nominate arbitrator from panel of 31 arbitrators within two weeks.
  • DMRC directed to prepare a broad-based panel inclusive of private sector and legal/accountancy professionals within two months.