Question

The validity of an arbitration agreement does not depend on the number of arbitrators specified therein, as the Act does not suggest the requirement of the number of arbitrators for an arbitration agreement: this was laid down in _____________.

• A. Orma Impex Pvt. Ltd. v. Nissuri Arb. Pte Ltd., AIR $1999$ SC $2871$
• B. Olympus Super Structures Pvt. Ltd. v. Meena Vijay Khetan, AIR $1999$ SC $2102$
• C. M.M.T.C. Ltd. v. Sterlite Industries(India) Ltd., AIR $1997$ SC $605$
• D. None of the above

Answer 1

The correct option is C M.M.T.C. Ltd. v. Sterlite Industries(India) Ltd., AIR $1997$ SC $605$

An arbitration agreement, according to Section $7$ of the Arbitration and Conciliation Act, $1996$, means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. It can either be a part of an agreement or in form of a separate arbitration agreement.

The validity of an arbitration agreement was challenged before the Supreme Court in the case of MMTC Ltd. v. Sterlite Industries (India) Ltd. on the grounds that arbitration clause could not be resorted to and invalid in the light of section 10 of the Act which provides that the parties are free to determine the number of arbitrators provided that such number shall not be even number.The Supreme Court rejected the plea and held that the relevant provision to determine the validity of the arbitration agreement in section $7$, which contains the writing requirement, and that there is no reference to number of arbitrators within this provision, that the validity of the arbitration clause does not depend on the number of arbitrators specified therein, and that the arbitration clause was valid.