JUDGEMENT
R. Vs. Raveendran, J. -
(1.)The appellant challenges the order of the Delhi High Court dated 27.3.2006 appointing a Retired Judge of the High Court as sole Arbitrator to decide the disputes arising in respect of a construction contract between the Northern Railways (appellant) and the respondent.
(2.)The appellant contends the appointment of arbitrators should be only in accordance with Clause 64 of the general terms and conditions of contract which requires two serving Gazetted Railway officers of equal status being appointed as Arbitrators, one by the contractor from a panel made available by the General Manager of Northern Railways and the other by the Northern Railways, and the two arbitrators so appointed, in turn appointing an Umpire.
(3.)It is true that the Arbitral Tribunal should be constituted in the manner laid down in the Arbitration agreement. Provisions for arbitration in contracts entered by governments, statutory authorities, and government companies, invariably require that the Arbitrators should be their own serving officers. Such a provision has to be given effect, subject to requirements of independence and impartiality. But there can be exceptions and this case which has a chequered history, falls under such exceptions.