Case Note & Summary
The dispute arose from a Survey Contract dated 8.4.2008 between the petitioner and the respondent, where the petitioner was to perform various surveys for the respondent. The petitioner, a Sub-Contractor, completed the geographical survey and partially completed soil sampling, raising an invoice for USD 565614.98 on 15th July 2008. Despite reminders and a legal notice dated 14.2.2009 for payment, the respondent did not respond. The petitioner subsequently invoked the arbitration clause through a legal notice dated 8.12.2010, proposing Mr. Pawan Aggarwal as the arbitrator, but the respondent failed to confirm this appointment. The petitioner then filed Arbitration Petition No.118 of 2011 in the Bombay High Court, which allowed withdrawal of the petition, directing the petitioner to approach the Supreme Court under Section 11(5) of the Arbitration and Conciliation Act, 1996. The Supreme Court noted that despite service of notice, the respondent did not appear, and the petitioner's claims were unchallenged. Consequently, the court appointed Mr. Justice Arvind V. Savant as the sole arbitrator, allowing him to fix his remuneration and terms for the arbitration, with the seat of arbitration in Mumbai. The order was communicated to the arbitrator for expeditious reference.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Entitlement to Appointment - Arbitration and Conciliation Act, 1996, Section 11(6) - The petitioner sought the appointment of a sole arbitrator due to the respondent's failure to respond to legal notices and confirm the appointment of an arbitrator. The court found that the petitioner's claims remained uncontroverted and thus allowed the petition for the appointment of an arbitrator. Held that the petition deserved to be allowed (Paras 1-8).
Issue of Consideration
Whether the petitioner is entitled to the appointment of a sole arbitrator under the Arbitration and Conciliation Act, 1996.
Final Decision
The Supreme Court allowed the arbitration petition and appointed Mr. Justice Arvind V. Savant as the sole arbitrator, with the seat of arbitration in Mumbai.
Law Points
- Arbitration
- Appointment of Arbitrator
- Dispute Resolution
- Legal Notice
- Service of Notice
