Delhi HC issues notice in plea challenging New Delhi International Arbitration Centre Ordinance, 2019

The Delhi High Court has issued notice in a plea challenging the Constitutional validity of the New Delhi International Arbitration Centre Ordinance, 2019..Notice was issued to the Central Government by a Division Bench of Chief Justice Rajendra Menon and Anup J Bhambhani in a petition by Abhishek Aggarwal..The Petition, filed through Advocate Gaurav Rana claims that the Ordinance, in its present form, is unconstitutional as it violates the independence and fearlessness of judiciary which is part of the Basic Structure of the Constitution of India..The Petitioner’s grievance is aimed at the control which would be exercised by the Central Government in the appointment of the arbitrators on the panel of the chamber of arbitration as per the Ordinance..While Section 14 of the Ordinance provides authority to the Arbitration Centre to maintain a panel of arbitrators, Section 28 authorises the Arbitration Centre to establish the chamber of arbitrators and to scrutinise the application for empanelment of the Arbitrators on its panel..Arguing that this panel of arbitrators would be discharging judicial function, the petition disputes the selection of the panel by the Arbitration Centre which in turn consists of Central Government appointees..It is thus the Petitioner’s case that the since the composition of Centre under Section 5 of the Ordinance is majorly formed of the Central Government, directly or indirectly, the independence and autonomy of the Arbitration Centre would be compromised..It is further argued that the Ordinance is ‘vulnerable’ and fails to pass the test of independence and impartiality under Section 12 (3)(a) of the Arbitration Act..The International Centre For Alternative Dispute Resolution’s plea against the promulgation of an Ordinance for establishing the New Delhi International Arbitration Centre is also pending before the Delhi High Court.