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CWG dispute: SC allows settlement through arbitration

LiveMint logoLiveMint 29-05-2014 PTI

New Delhi: The Supreme Court has allowed the arbitration plea of Swiss Timing Ltd against Organising Committee (OC) of the 2010 Commonwealth Games and also nominated two of its former judges as chairman of the Arbitral Tribunal and second arbitrator for resolving the disputes.

A bench of Justice S.S. Nijjar said Swiss Timing has already nominated former apex court judge, Justice S.N. Variava as their arbitrator and nominated its former judges, Justice Kuldip Singh and Justice B.P. Singh as chairman of the Arbitral Tribunal and second arbitrator respectively to adjudicate the disputes that have arisen between Swiss Timing and OC on such terms and conditions as they deem fit and proper.

“The registry is directed to communicate this order to the chairman of the Arbitral Tribunal, as well as, to the second arbitrator to enable them to enter upon the reference and decide the matter as expeditiously as possible,” the bench said while allowing the arbitration petition of Swiss Timing.

The bench, however, rejected the contention of OC that since a criminal case has been registered against the OC’s former chairman Suresh Kalmadi and some other officials of Swiss Timing, the apex court would have no jurisdiction to make a reference to arbitration. It said “the balance of convenience is tilted more in favour of permitting the arbitration proceedings to continue rather than to bring the same to a grinding halt.”

Switzerland-based Swiss Timing approached the apex court pleading to appoint the nominee arbitrator of OC and to further constitute the arbitral tribunal, by appointing the presiding arbitrator in order, to adjudicate the disputes that have arisen between the parties.

Swiss Timing said that it entered an agreement on 11 March 2010, with the OC for providing timing, score and result (TSR) systems as well as supporting services required to conduct the Commonwealth Games and in consideration of its services as stipulated in the agreement, Swiss Timing was to receive Swiss Francs 24,990,000 (over `164.09 crore). It was also stipulated that 5% of the total service fees was to be made upon completion of the Commonwealth Games.

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