Whether the application under Section 11(6) of the Arbitration and
Conciliation Act, 1996 (hereinafter referred to as “the Act”) seeking appointment of a Sole Arbitrator in terms of clause 22.3 of the Supply Contract between the parties which was entered is maintainable without following the procedure of giving notice and without naming the arbitrator by mutual consent when the sole arbitrator recused himself ? - No , the application is a premature one.- 2015 MSKLAWREPORTS
Under Section 15(2) of the Act in a situation where the mandate
of an arbitrator terminates, a substitute arbitrator is required to be
appointed according to the rules that were applicable to the appointment of
the arbitrator who is replaced.
Clause 22.3 of the Supply Contract contemplates appointment of
a sole arbitrator by the parties by mutual consent.
In a situation where
the original arbitrator i.e. Shri Justice S.K. Dubey had recused himself
the substitute or new arbitrator is required to be appointed according to
the rules that were applicable to the appointment of the original
arbitrator.
This is the mandate of Section 15(2) of the Act.
It was,
therefore, incumbent on the petitioner to give notice and explore the
possibility of naming an arbitrator by mutual consent and only on failure
thereof the present application under Section 11(6) of the Act could/should
have been filed.
The above recourse is required to be followed by virtue
of the provisions of Section 15(2) of the Act and the decision of this
Court in Yashwith Constructions (P) Ltd. (supra).
Admittedly, the same had
not been followed. In these circumstances, the Court will understand the
present application/arbitration petition to be premature.
It is
accordingly not entertained leaving it open for the petitioner to act
appropriately, if so advised, in terms of the present order and thereafter
seek its remedies as provided by law.
The Arbitration Petition is disposed of in the above terms. 2015 SC MSKLAWREPORTS
Conciliation Act, 1996 (hereinafter referred to as “the Act”) seeking appointment of a Sole Arbitrator in terms of clause 22.3 of the Supply Contract between the parties which was entered is maintainable without following the procedure of giving notice and without naming the arbitrator by mutual consent when the sole arbitrator recused himself ? - No , the application is a premature one.- 2015 MSKLAWREPORTS
Under Section 15(2) of the Act in a situation where the mandate
of an arbitrator terminates, a substitute arbitrator is required to be
appointed according to the rules that were applicable to the appointment of
the arbitrator who is replaced.
Clause 22.3 of the Supply Contract contemplates appointment of
a sole arbitrator by the parties by mutual consent.
In a situation where
the original arbitrator i.e. Shri Justice S.K. Dubey had recused himself
the substitute or new arbitrator is required to be appointed according to
the rules that were applicable to the appointment of the original
arbitrator.
This is the mandate of Section 15(2) of the Act.
It was,
therefore, incumbent on the petitioner to give notice and explore the
possibility of naming an arbitrator by mutual consent and only on failure
thereof the present application under Section 11(6) of the Act could/should
have been filed.
The above recourse is required to be followed by virtue
of the provisions of Section 15(2) of the Act and the decision of this
Court in Yashwith Constructions (P) Ltd. (supra).
Admittedly, the same had
not been followed. In these circumstances, the Court will understand the
present application/arbitration petition to be premature.
It is
accordingly not entertained leaving it open for the petitioner to act
appropriately, if so advised, in terms of the present order and thereafter
seek its remedies as provided by law.
The Arbitration Petition is disposed of in the above terms. 2015 SC MSKLAWREPORTS