Between The Lines... October 2017

Key Highlights

1. Supreme Court decides on appointment of employee of a party as arbitrator for arbitrations initiated prior to 2015 amendment
2. SARFAESI proceedings and arbitration proceedings can go hand in hand: Supreme Court
3. CBDT takes a step forward towards easing the tax concern of global MNC's having regional headquarters in India

I. Supreme Court decides on appointment of employee of a party as arbitrator for arbitrations initiated prior to 2015 amendment

The Supreme Court of India in the case of Aravali Power Company Private Limited vs. M/s. Era Infra Engineering Limited (decided on September 12, 2017) held that if the appointed arbitrator is an employee of one party for an arbitration initiated prior to the Arbitration and Conciliation (Amendment) Act, 2015 (the "2015 Amendment Act") coming into force, such appointment could not by itself, be rendered invalid and unenforceable.