Case Note & Summary
The dispute arose from a contract between the petitioner and the respondent for the supply of Base Bleed Units, initially for 42,000 units, later increased to 52,000 units. The petitioner supplied a substantial quantity by January 2005, but some goods were rejected by the respondent, leading to claims of loss and damage. Following unsuccessful attempts to resolve the disputes, the respondent appointed an arbitrator, which the petitioner contested due to perceived bias. The Principal District Court later terminated the arbitrator's mandate, leading to the current petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking the appointment of an independent arbitrator. The respondent argued that a substitute arbitrator had been appointed and that the petition was not maintainable. The court analyzed the submissions and found that the respondent had forfeited the right to appoint an arbitrator due to delays and the circumstances indicated a lack of impartiality. The court ultimately appointed Hon. Mr. Justice Ashok C. Agarwal as the Sole Arbitrator to adjudicate the disputes, emphasizing the need for independence in the arbitration process.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Validity of Appointment - Arbitration and Conciliation Act, 1996, Sections 11(4), 11(6) - The court found that the appointment of the arbitrator by the respondent was invalid as the right to appoint was forfeited due to failure to act within the stipulated time. The court emphasized the need for an independent arbitrator given the circumstances of bias and lack of impartiality in the previous appointments. Held that an independent arbitrator was necessary to ensure fairness in the proceedings (Paras 10-20).
Issue of Consideration
Whether the appointment of an arbitrator by the respondent was valid and whether an independent arbitrator should be appointed.
Final Decision
The Supreme Court allowed the petition and appointed Hon. Mr. Justice Ashok C. Agarwal as the Sole Arbitrator, emphasizing the need for independence in the arbitration process.
Law Points
- Arbitration
- Conciliation
- Appointment of Arbitrator
- Bias
- Independence of Arbitrator
