Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 2012 (7) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (7) TMI 383 - SC - Indian LawsPetition seeking reference of the disputes to an independent and impartial sole Arbitrator - provisions of arbitration contained in Clause 10 of the general conditions that once the parties have agreed upon a named arbitrator, the parties cannot resile therefrom - the Chairman-cum-Managing Director had duly acted and exercised his powers and had appointed General Manager (Kot) as the arbitrator - Held that:- It would appear that even though the order may have been made on 19th July, 2011, it was served for the first time on the counsel of the petitioner by e-mail on 26th July, 2011. Therefore, prima facie, it would not be possible to accept the submission of respondent that the petition would not be maintainable on the ground that the arbitrator had already been appointed at the time when the present petition was filed. The issue needs to be decided on the basis of the evidence produced by the parties, at the appropriate time. It would not be possible to reject the petition merely on the ground that this Court would have no power to make an appointment of an arbitrator other than the Chairman-cum-Managing Director or his designate. This Court would have the power to appoint a person other than the named arbitrator, upon examination of the relevant facts, which would tend to indicate that the named arbitrator is not likely to be impartial - the petitioner had clearly pleaded that the named arbitrator is a direct subordinate of the CMD and employee of the respondent. CMD is the controlling authority of all the employees, who have been dealing with the subject matter in the present dispute and also controlling authority of the named arbitrator. Apprehending that the CMD, who had been dealing with the entire contract would not act impartially as an arbitrator - the petitioner thus made it explained that it may not get any justice in the hands of the Managing Director, since he cannot go against the directions issued by the Ministry of Defence, Government of India and, therefore, it would be appropriate to appoint independent sole arbitrator - in favour of petitioner
|