Category: Number of Arbitrators

ISSUE:

Whether Section 10 is a non-derogable provision in arbitration? Whether a mandatory provision of the Act can be waived by the parties?

RULE:

The appellant contended that Section 10 is a mandatory provision of the Act. In the present matter, the Arbitral tribunal was not validly constituted, hence it should be void and invalid. Moreover, if the constitution of the arbitrators is invalid, it should also render the award void. The appellant also contended that Section 16 does not provide for any challenge of the constitution of the Arbitration Tribunal. Therefore, an invalidly constituted tribunal deems lack of jurisdiction.

ISSUE:

Whether the arbitration clause in the sales contract between MMTC and Sterlite was valid and enforceable.

Whether the arbitrator had jurisdiction to hear the dispute.

Whether the arbitrator's award was valid and enforceable.

RULE:

Arbitration clauses in international commercial contracts are valid and enforceable in India.