Case Note & Summary
The dispute arose from an agreement dated 25.5.2009 between the petitioner and the respondent for the supply of 12,500 MT of metal scraps at a total contract value of USD 3,000,000. The petitioner made payments totaling USD 1,000,000 but did not receive the materials as per the agreement. Following repeated requests for delivery, the petitioner sent a notice on 29.10.2009 seeking arbitration as per the arbitration clause in the agreement. The clause allowed for arbitration in either Spain or India, and the petitioner opted for arbitration in India. The non-applicant did not nominate an arbitrator despite being given the opportunity, and the court noted that the arbitration clause did not specify the number of arbitrators. The court concluded that there was a prima facie breach of the agreement by the non-applicant and that the arbitration petition was filed within the limitation period. Consequently, the court allowed the petition and appointed Mr. Justice B.P. Singh as the sole arbitrator, granting him the discretion to fix his remuneration and conduct the proceedings at a convenient location. The order was to be communicated to the arbitrator for prompt action.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Validity of Arbitration Clause - Arbitration and Conciliation Act, 1996, Section 11(6) - The court found a valid subsisting arbitration clause and noted the non-applicant's failure to nominate an arbitrator despite notice. The petition was allowed, and the dispute was referred to a sole arbitrator, emphasizing the need for resolution under the agreed terms (Paras 4-5).
Issue of Consideration
Whether to appoint an arbitrator under the Arbitration and Conciliation Act, 1996.
Final Decision
The court allowed the petition and appointed Mr. Justice B.P. Singh as the sole arbitrator, with the arbitration proceedings to be held in Delhi or a convenient location.
Law Points
- Arbitration agreement
- appointment of arbitrator
- breach of contract
- arbitration clause
- limitation period
