Summary of Judgement
Existence of Arbitration Agreement: Whether the purported arbitration agreement dated 01.04.1957 was valid and enforceable. Unilateral Appointment of Arbitrators: Whether the arbitrators were appointed in violation of the principles of party autonomy and statutory requirements.Fraudulent Claims: Whether the arbitration proceedings and awards were tainted with fraud, lacking jurisdiction. (Paras: 16-25)
Acts and Sections Discussed:
- Constitution of India (COI)
- Article 226: Jurisdiction of High Courts
- Arbitration and Conciliation Act, 1996 (A&C Act)
- Section 7: Arbitration Agreement
- Section 11: Appointment of Arbitrators
- Section 34: Application for Setting Aside Arbitral Award
- Section 43: Limitation Period
- Section 18: Equal Treatment of Parties
- Code of Civil Procedure, 1908 (CPC)
- Section 47: Questions to Be Determined by the Court Executing a Decree
Subjects:
Arbitration Agreement, Limitation Period, Unilateral Appointment, Ex Parte Awards, Fraudulent Arbitration
Decision and Ratio Decidendi:
- Nullity of Awards:
The Supreme Court declared the ex parte arbitration awards dated 15.02.2008 and 25.06.2008 as null and void, holding that the arbitration agreement relied upon was not established.
- Fraudulent Proceedings:
The Court emphasized that arbitration proceedings orchestrated by the respondent were fraudulent and lacked jurisdiction, violating fundamental principles of justice.
- Principle of Party Autonomy:
The unilateral appointment of arbitrators was deemed invalid. Arbitration requires consent and adherence to statutory frameworks under the A&C Act.
- Execution Proceedings Dismissed:
The Court dismissed the execution petitions initiated based on the invalid awards
Case Title: STATE OF UTTAR PRADESH AND ANOTHER VERSUS R.K. PANDEY AND ANOTHER
Citation: 2025 LawText (SC) (1) 91
Case Number: CIVIL APPEAL NO. 10212 OF 2014
Date of Decision: 2025-01-09