Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Home Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles News Highlights
Extracts
Home List
← Previous Next →

Aravali Power Company Pvt. Ltd. Versus M/s. Era Infra Engineering Ltd.

2017 (9) TMI 675 - SUPREME COURT OF INDIA

Arbitration proceedings - delays in the project - Appellant-Aravali Power Company Pvt. Ltd., scheduled date of completion of work was 19.05.2011 but the progress of work was quite slow which compelled the Appellant to cancel certain remaining works by its letters dated 18.07.2014, 24.10.2014, 30.06.2015 and 08.07.2015 - Held that:- In the present case, the Arbitrator undoubtedly is an employee of the Appellant but so long as there is no justifiable apprehension about his independence or impartia .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dure as laid down in unamended Section 12 mandated disclosure of circumstances likely to give rise to justifiable doubts as to independence and impartiality of the arbitrator. It is not the case of the Respondent that the provisions of Section 12 in unamended form stood violated on any count. In any case the provision contemplated clear and precise procedure under which the arbitrator could be challenged and the objections in that behalf under Section 13 could be raised within prescribed time an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s and progress of arbitration. We therefore accept the challenge raised by the Appellant and reject that raised by the Respondent. - Civil Appeal Nos. 12627-12628 of 2017@, (Special Leave Petition (Civil) Nos.25206-25207 of 2016) And Civil Appeal Nos. 12629-12630 of 2017@, (Special Leave Petition (Civil) Nos.503-504 of 2017) - Dated:- 12-9-2017 - Mr. Adarsh Kumar Goel And Mr. Uday Umesh Lalit JJ. JUDGMENT Uday Umesh Lalit, J. 1. Leave granted. These appeals challenge the common judgment and orde .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d arbitration between the parties in following terms:- 56. ARBITRATION:- Except where otherwise provided for in the contract all questions and disputes relating to the meaning of the specifications, designs, drawings and instructions herein before mentioned and as to the quality of workmanship or materials used on the work or as to any other questions, claim, rights, matter or thing whatsoever in any way arising out of or relating to the contract, design, drawing, specifications, estimates, inst .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

National Thermal Power Corporation Ltd) willing to act as such Arbitrator. There will be no objections, if the Arbitrator so appointed is an employee of NTPC Limited (Formerly National Thermal Power Corporation Ltd), and that he had to deal with the matters to which the contract relates and that in the course of his duties as such he had expressed views on all or any of the matters in disputes or difference. The Arbitrator to whom the matter is originally referred being transferred or vacating .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ch compelled the Appellant to cancel certain remaining works by its letters dated 18.07.2014, 24.10.2014, 30.06.2015 and 08.07.2015. By its letter dated 29.07.2015 the Respondent alleged that the delays in the project were not attributable to the Respondent and after setting out certain grievances, the letter thereafter sought to invoke arbitration submitting further that arbitration be through a retired Judge of the High Court, the relevant portion of the letter being:- In view of the above cir .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ority & particularly its subordinate is of no legal consequence. It is a well settled proposition of law that nobody can be judge in its own cause. Therefore, in light of the aforesaid settled position of law, we seek an independent arbitration, through a retired Hon ble Judge of the Hon ble High Court so as to seek vindication of our grievance as mentioned in foregoing paras. Since the matter is utmost important, we hereby request that a panel of independent Arbitrators may kindly be made a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tor on 19.08.2015 and intimated the respondent on the same day in following terms: Please note that in terms of the Arbitration Clause 56 of the GCC there is no provision for selection by you of Arbitrator from any panel of Arbitrators to be offered by us. There is also no provision for formation of an Arbitral Tribunal as suggested by you. Clause 56 of the GCC envisaged the appointment of the designated officers as Arbitrator and accordingly the Chief Executives Officer APCPL on your request, h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f response to counter claim etc. The proceedings do not show any objection having been raised by the Respondent regarding continuation of the arbitration proceedings. On 04.12.2015 a letter was addressed by the Respondent to the Arbitrator seeking extension of time to file its statement of claim. It was stated, inter alia: In the last-hearing held on 07.10.2015 the Claimant was given 60 days time to file its Statement of Claim. In this connection it is to state that we need to collect some more .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ct ) was gazetted and according to Section 1(2), the Amendment Act was deemed to have come into force on 23rd October, 2015. 7. For the first time on 12.01.2016, the Respondent sought to challenge the Arbitrator and raised objection regarding constitution of the arbitral tribunal as under: In reference to the above referred communications addressed by us, we hereby state that the constitution of the present arbitral tribunal is wholly invalid/void & against the settled principles of law, and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on was rejected by the Arbitrator on 22.01.2016 on the ground that the Respondent had participated in the arbitral proceedings on 07.10.2015 without raising any protest. The Respondent was then intimated to attend proceedings in arbitration scheduled to be held on 16.02.2016. The Respondent however, approached the High Court of Delhi by filing petition under Section 14 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 1996 Act ), registered as OMP(T)(Comm.) No.13/2016, se .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

body and not by the other party to the contract. IV That without prejudice to the above, it would also be relevant to mention herein that the allegedly appointed Arbitrator namely, Shri S.K. Sinha, would also be otherwise unable to perform the functions of an independent Arbitrator, in as much as, he has himself, in his official capacity in the respondent-company, dealt with contracts of nature similar to the contract works in question herein (including the present contract works), on behalf of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ioned spirit as reiterated by the Hon ble Courts, the Act has also been suitably amended by the Legislature, whereby, inter alia, it has been expressly provided that an Arbitrator who is an Employee, Manager, Director or part of the Management or has a similar controlling influence in one of the parties to the arbitration, is a valid ground giving rise to justifiable doubts as to the independence or impartiality of an Arbitrator. Furthermore, it has also been provided that an Arbitrator s previo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the respondent-company, against whom the petitioner herein seeks to assert its claims. In such circumstances, the said allegedly appointed arbitrator would both in law and fact be unable to perform his functions as an Arbitrator in an independent or impartial manner. 9. On the same day, another petition being Arbitration Petition No.136 of 2016 was filed by the Respondent under Section 11(6) of 1996 Act for appointing an independent arbitrator for adjudicating disputes between the parties. The .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

bunal, which cause of action is still subsisting and continuing since the respondent has failed to make the outstanding payment and to so appoint an independent Arbitral Tribunal. 10. On 01.03.2016 the High Court issued notice and stayed further proceedings in arbitration. The matter was contested by the Appellant submitting, inter alia, that the petition under Section 14 of 1996 Act was not maintainable; that the Arbitrator was appointed strictly in terms of Clause 56 of the GCC; and that thoug .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er. It was directed that in the event of failure by the Appellant, the Respondent would be at liberty to revive the petitions, in which case the Court would appoint a sole Arbitrator from the list maintained by Delhi International Arbitration Centre. It was also observed that the Arbitrator was CEO of the Appellant and was previously involved in cases/contract works similar to the one involved in the present case and it could not be disputed that the decisions of part cancellation were taken at .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y the petitioner under the contract in question. In fact, the Engineer In-charge for this project is AGM (CCD-Township) who is supported by Group of Engineers (Dy. Managers, Managers & Sr. Managers) working under him for execution of the work. Further, the AGM (CCD-Township) reports to AGM (ME/CCD) who in turn reports to CEO (APCPL). 37. It is common parlance oft-quoted aphorism "Not only must Justice be done; it must also be seen to be done." The reason is that rules are moral con .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that if the Arbitrator has within the past three years been appointed on two or more occasions by one of the parties and the Arbitrator has served within the three years in another arbitration on a related issue involving one of the parties, his appointment would give rise to justifiable doubts as to the independence or impartiality of arbitrators. No doubt, the invocation was about three months prior to amendment. But the Court has to keep in mind about the purpose and scope of the Act. 38. In .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ointed as ultimately neutral person has merely to decide the dispute between the parties. Even, the object and scope of the Act says so, that an arbitration procedure should be fair and unbias. Thus, the appointment of Mr. S.K. Sinha, CEO of the respondent Company is terminated and once the Arbitrator s appointment is terminated, the Court can consider the prayer of the petitioner. 12. The decision of the High Court is challenged by the Appellant and Mr. Vikas Singh, learned Senior Advocate subm .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ought not to have been entertained. 13. To the extent the High Court had directed the Appellant to submit three names from its panel of Arbitrators from which list the Respondent was to select the sole Arbitrator, the Respondent challenged that part of the Judgment by filing SLP (Civil) Nos.503-504 of 2017. Appearing for the Respondent, Mr. Manoj K. Singh, learned Advocate relied upon some decisions of this Court and submitted that an Officer who had either dealt with the project or was directly .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t controversy are those that were in force before the Amendment Act came into effect. We must mention here that both the parties have addressed their submissions on this premise. 15. Before we consider the present controversy, we may quote, for facility, Sections 12, 13 and 14 of 1996 Act as they stood before the Amendment Act came into force:- 12. Grounds for challenge.- (1) When a person is approached in connection with his possible appointment as an arbitrator, he shall disclose in writing an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(b) he does not possess the qualifications agreed to by the parties. (4) A party may challenge an arbitrator appointed by him, or in whose appointment he has participated, only for reasons of which he becomes aware after the appointment has been made. 13. Challenge procedure.- (1) Subject to sub-section (4), the parties are free to agree on a procedure for challenging an arbitrator. (2) Failing any agreement referred to in sub-section (1), a party who intends to challenge an arbitrator shall, w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

parties or under the procedure under sub-section (2) is not successful, the arbitral tribunal shall continue the arbitral proceedings and make an arbitral award. (5) Where an arbitral award is made under sub-section (4), the party challenging the arbitrator may make an application for setting aside such an arbitral award in accordance with section 34. (6) Where an arbitral award is set aside on an application made under sub-section (5), the Court may decide as to whether the arbitrator who is ch .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ly to the Court to decide on the termination of the mandate. (3) If, under this section or sub-section (3) of section 13, an arbitrator withdraws from his office or a party agrees to the termination of the mandate of an arbitrator, it shall not imply acceptance of the validity of any ground referred to in this section or sub-section (3) of section 12. 16. In the present case Clause 56 of the GCC provides for arbitration by the Project In-charge of the concerned Project, and in case such Project .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

itself, before the Amendment Act came into force, rendered such appointment invalid and unenforceable. The observations of this Court in Indian Oil Corporation Ltd. and Others v. Raja Transport Private Ltd. (2009) 8 SCC 520 in paragraphs 28, 30, 31 and 32 are quite clear. Said paragraphs were as under: 28. It is contended by the respondent that in view of the emphasis on the independence and impartiality of an arbitrator in the new Act and having regard to the basic principle of natural justice .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tor, to have due regard to: 11. (8)(a) any qualifications required of the arbitrator by the agreement of the parties; and (b) other considerations as are likely to secure the appointment of an independent and impartial arbitrator. 31. Section 12(1) requires an arbitrator, when approached in connection with his possible appointment, to disclose in writing any circumstances likely to give rise to justifiable doubts as to his independence or impartiality. Section 12(3) enables the arbitrator being .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

if such named arbitrator is an employee of one of the parties to the arbitration agreement. 18. In the same decision, this Court in paragraphs 34 and 35 dealt with justifiable apprehension about the independence or impartiality of an employee arbitrator in following terms:- 34. The fact that the named arbitrator is an employee of one of the parties is not ipso facto a ground to raise a presumption of bias or partiality or lack of independence on his part. There can however be a justifiable appre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e subject contract, there can be no justification for anyone doubting his independence or impartiality, in the absence of any specific evidence. Therefore, senior officer(s) (usually Heads of Department or equivalent) of a Government/statutory corporation/public sector undertaking, not associated with the contract, are considered to be independent and impartial and are not barred from functioning as arbitrators merely because their employer is a party to the contract. 19. Section 12(1) as it the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

held in the case of Indian Oil Corporation Ltd. (supra) mere fact that the arbitrator is an employee is not ipso facto a ground to raise any presumption of bias or partiality. It is not the case that there had not been any fair and correct disclosure. All that the Respondent alleged in its petition seeking termination of the mandate of the Arbitrator was, …..he has himself in his official capacity in the Respondent-Company dealt with contracts of nature similar to the contract works in q .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ct, the Engineer In-charge was AGM (CCD-Township) who had a team of other Engineers working under him and that AGM(CCD-Town ship) reported to AGM (ME-CCD) who in turn reported to CEO (APCPL) i.e. the Arbitrator. The facts on record and the hierarchy as mentioned do not show that the Arbitrator in the present matter was either the Dealing Authority in regard to the Contract or was directly sub-ordinate to the Officer(s) whose decision is the subject matter of dispute. In fact, the decision, which .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

be illegal or unenforceable. 20. However, number of decisions of this Court were relied upon by the Respondent in support of its submission that interference in the present case was called for. We may therefore deal with those decisions. A. In Northern Railway Administration, Ministry of Railway, New Delhi v. Patel Engineering Company Ltd (2008) 10 SCC 240., a Bench consisting of three learned Judges of this Court was called upon to consider the apparent conflict between two Judgments of this Co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. Corrective measures have to be taken first and the Court is the last resort. The discussion in paragraphs 12, 13 and 14 of the decision was as under:- 12. A bare reading of the scheme of Section 11 shows that the emphasis is on the terms of the agreement being adhered to and/or given effect as closely as possible. In other words, the Court may ask to do what has not been done. The Court must first ensure that the remedies provided for are exhausted. It is true as contended by Mr. Desai, that i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

illary to the accomplishment of the intended act. Necessary measures can be stated to be the reasonable steps required to be taken. 14. In all these cases at hand the High Court does not appear to have focused on the requirement to have due regard to the qualifications required by the agreement or other considerations necessary to secure the appointment of an independent and impartial arbitrator. It needs no reiteration that appointment of the arbitrator or arbitrators named in the arbitration a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

isting of three serving Officers was constituted but no proceedings were actually undertaken. Thereafter, on an application preferred under Section 11, the High Court appointed a Former Judge of that High Court as the sole arbitrator. Paragraph 11 of the decision set out the question which arose for consideration and Paragraph 14 was as under:- 14. It was further held in Northern Railway case that the Chief Justice or his designate should first ensure that the remedies provided under the arbitra .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ration agreement has not functioned and it becomes necessary to make fresh appointment, the Chief Justice or his designate is not powerless to make appropriate alternative arrangements to give effect to the provision for arbitration. C. After dealing with cases on the point including Northern Railway Administration (supra), this Court in Indian Oil Corporation Ltd. (supra) summed up the legal position as under:- 45. If the arbitration agreement provides for arbitration by a named arbitrator, the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rbitrator, appoint an independent arbitrator in accordance with Section 11(8) of the Act. In other words, referring the disputes to the named arbitrator shall be the rule. The Chief Justice or his designate will have to merely reiterate the arbitration agreement by referring the parties to the named arbitrator or named Arbitral Tribunal. Ignoring the named arbitrator/Arbitral Tribunal and nominating an independent arbitrator shall be the exception to the rule, to be resorted for valid reasons. 4 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e on the third arbitrator within 30 days from the date of the appointment), the Chief Justice or his designate will exercise power under sub-section (4) of Section 11 of the Act. (ii) Where the agreement provides for arbitration by a sole arbitrator and the parties have not agreed upon any appointment procedure, the Chief Justice or his designate will exercise power under sub-section (5) of Section 11, if the parties fail to agree on the arbitration within thirty days from the receipt of a reque .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

institution fails to perform any function entrusted to him/it under that procedure). (iv) While failure of the other party to act within 30 days will furnish a cause of action to the party seeking arbitration to approach the Chief Justice or his designate in cases falling under sub-sections (4) and (5), such a time-bound requirement is not found in sub-section (6) of Section 11. The failure to act as per the agreed procedure within the time-limit prescribed by the arbitration agreement, or in th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion precedent for approaching the Chief Justice or his designate for taking necessary measures under sub-section (6) is that (i) a party failing to act as required under the agreed appointment procedure; or (ii) the parties (or the two appointed arbitrators) failing to reach an agreement expected of them under the agreed appointment procedure; or (iii) a person/institution who has been entrusted with any function under the agreed appointment procedure, failing to perform such function. (vi) The .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ore the designated arbitrator and appoint someone else. Thus, as laid down in sub-para (v) of para 48, unless the cause of action for invoking jurisdiction under Clauses (a), (b) or (c) of sub-section (6) of Section 11 of 1996 Act arises, there is no question of the Chief Justice or his designate exercising power under sub-section (6) of Section 11. D. In Denel (Proprietary) Limited v. Bharat Electronics Limited and Another (2010) 6 SCC 394, though the arbitration agreement provided that all dis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

v. Tata Finance Ltd. (2000) 8 SCC 151 this Court while considering the powers of the Court to appoint an arbitrator under Section 8 of the Arbitration Act, 1940, cited the decision of this Court in Bhupinder Singh Bindra v. Union of India (1995) 5 SCC 329. It was held in that case that: 3. It is settled law that court cannot interpose and interdict the appointment of an arbitrator, whom the parties have chosen under the terms of the contract unless legal misconduct of the arbitrator, fraud, disq .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Servant appointed by him. It was observed that since no arbitrator was appointed in terms of the governing clause within the stipulated period the respondent had forfeited the right to make an appointment of an arbitrator. Paragraphs 21 and 24 of the decision were:- 21. It is true that in normal circumstances while exercising jurisdiction under Section 11(6), the Court would adhere to the terms of the agreement as closely as possible. But if the circumstances warrant, the Chief Justice or the n .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

all have due regard to other considerations as are likely to ensure the appointment of an independent and impartial arbitrator. Keeping in view the aforesaid provision, this Court in Indian Oil Corpn. Ltd, whilst emphasizing that normally the Court shall make the appointment in terms of the agreed procedure, has observed that the Chief Justice or his designate may deviate from the same after recording reasons for the same…….. F. In Union of India and Others v. Uttar Pradesh State B .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rt observed:- 12. As is clear from the reading of Section 14, when there is a failure on the part of the Arbitral Tribunal to act and it is unable to perform its function either de jure or de facto, it is open to a party to the arbitration proceedings to approach the court to decide on the termination of the mandate. Section 15 provides some more contingencies when mandate of an arbitrator can get terminated. In the present case, the High Court has come to a categorical finding that the Arbitral .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n a cavalier manner. Therefore, the order of the High Court terminating the mandate of the Arbitral Tribunal is flawless. This aspect of the impugned order is not even questioned by the appellant at the time of hearing of the present appeal. However, the contention of the appellant is that even if it was so, as per the provisions of Section 15 of the Act, substitute arbitrators should have been appointed according to the rules that were applicable to the appointment of the arbitrator being repla .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion under some circumstances? If yes, what are those circumstances? It is this very aspect which was specifically dealt with by this Court in Tripple Engg. Works. (2014) 9 SCC 288. Taking note of various judgments, the Court pointed out that the notion that the High Court was bound to appoint the arbitrator as per the contract between the parties has seen a significant erosion in recent past. In paras 6 and 7 of the said decision, those judgments wherein departure from the aforesaid classical n .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

espondents, an objection was taken that such procedure would lead to appointment of illegal persons in view of Section 12(5) read with Clause 1 of Schedule 7 of the Act. This Court considered that Section 12 of the Act was amended pursuant to the recommendations by the Law Commission which specifically dealt with the issue of neutrality of arbitrators , and observed that if the arbitration clause finds foul with the amended provisions, the appointment of the Arbitrator even if apparently in conf .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is, sub-section (5) of Section 12 lays down that notwithstanding any prior agreement to the contrary, any person whose relationship with the parties or counsel or the subject-matter of the dispute falls under any of the categories specified in the Seventh Schedule, he shall be ineligible to be appointed as an arbitrator. In such an eventuality i.e. when the arbitration clause finds foul with the amended provisions extracted above, the appointment of an arbitrator would be beyond pale of the arbi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e. Voestalpine Schienen GMBH (supra) was a case where the invocation was on 14.6.2016 i.e. after the Amendment Act and the observations in Para 18 clearly show that since the arbitration clause finds foul with the amended provisions , the Court was empowered to appoint such arbitrator(s) as may be permissible. The ineligibility of the arbitrator was found in the context of amended Section 12 read with Seventh Schedule (which was brought in by Amendment Act) in a matter where invocation for arbit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to above show that once the conditions for exercise of jurisdiction under Section 11(6) were satisfied, in the exercise of consequential power under Section 11(8), the Court had on certain occasions gone beyond the scope of the concerned arbitration clauses and appointed independent arbitrators. What is clear is, for exercise of such power under Section 11(8), the case must first be made out for exercise of jurisdiction under Section 11(6). 22. The principles which emerge from the decisions ref .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

if he is a direct subordinate to the officer whose decision is the subject-matter of the dispute. (ii) unless the cause of action for invoking jurisdiction under Clauses (a), (b) or (c) of sub-section (6) of Section 11 of 1996 Act arises, there is no question of the Chief Justice or his designate exercising power under sub-section (6) of Section 11. (iii) The Chief Justice or his designate while exercising power under sub-section (6) of Section 11 shall endeavour to give effect to the appointme .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ned by 1996 Act after the Amendment Act has come into force:- If the arbitration clause finds foul with the amended provisions, the appointment of the Arbitrator even if apparently in conformity with the arbitration clause in the agreement, would be illegal and thus the Court would be within its powers to appoint such arbitrator(s) as may be permissible. 23. The observations of the High Court in paragraphs 37-38 as quoted above show that the exercise was undertaken by the High Court, in order to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Forum
what is new what is new
  ↓     bird's eye view     ↓  


|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version