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Report No. 176

9. Insertion of new section 10A

After section 10 of the principal Act, the following section shall be inserted, namely:-

Employees, etc., not to be appointed as arbitrators in certain cases "

10A. (1) Subject to the provisions of sub-section (2), where any arbitration agreement contains a clause enabling one of such parties to appoint his or its own employee or consultant or advisor or other person having business relationship with him or it, as an arbitrator, such a clause shall be void to that extent.

(2) The provisions of sub-section (1) shall not- (a) apply to an agreement in international arbitration (whether commercial or not);.

(b) render any clause, in an arbitration agreement which enables the Central or a State Government or a Public Sector Undertaking or a statutory body or a statutory corporation or other public authority, as the case may be, to appoint its own employee or consultant or advisor or any other person having business relationship, as an arbitrator, void;"

The Arbitration and Conciliation (Amendment) Bill, 2001 Back

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