Supreme Court Appoints Sole Arbitrator in Arbitration Dispute — Parties Agreed on Appointment. The court appointed Shri D.R. Bhatia as the sole Arbitrator to resolve all disputes raised by the appellant under Section 11 of the Arbitration and Conciliation Act, 1996.

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Case Note & Summary

The dispute arose from an arbitration agreement between the appellant and the respondent concerning the auction of a parking site. The appellant challenged the High Court of Delhi's judgment which directed the appointment of an Arbitrator but limited the scope of disputes to a specific issue regarding the area handed over. The appellant contended that the High Court erred by not referring all disputes to the Arbitrator and by directing the appointment of a new Arbitrator instead of appointing one directly. During the appeal, the appellant's counsel suggested appointing Shri D.R. Bhatia as the sole Arbitrator to resolve all disputes, a suggestion to which the respondent's counsel had no objection. The Supreme Court, without delving into the legal issues raised, agreed to appoint Shri D.R. Bhatia as the sole Arbitrator to adjudicate all disputes within six months, fixing the Arbitrator's fee at Rs. 50,000. The appeal was disposed of accordingly.

Headnote

A) Arbitration Law - Appointment of Arbitrator - High Court's Restriction on Disputes - Arbitration and Conciliation Act, 1996, Section 11 - The High Court directed the appointment of an Arbitrator but limited the disputes to a specific issue, which the appellant contested. The Supreme Court appointed a sole Arbitrator to resolve all disputes as per the agreement, emphasizing the need for comprehensive adjudication. Held that the appointment of Shri D.R. Bhatia as Arbitrator was appropriate to address all issues raised (Paras 3-5).

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Issue of Consideration

Whether the High Court erred in restricting the disputes referred to the Arbitrator and in appointing a fresh Arbitrator.

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Final Decision

The Supreme Court appointed Shri D.R. Bhatia as the sole Arbitrator to decide all disputes raised by the appellant in the petition filed under Section 11 of the Arbitration and Conciliation Act, 1996, to be resolved within six months.

Law Points

  • Arbitration
  • appointment of arbitrator
  • Section 11 Arbitration and Conciliation Act
  • 1996
  • dispute resolution
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Case Details

2009 LawText (SC) (03) 113

Civil Appeal No. 1794 of 2009

2009-03-23

Tarun Chatterjee, H.L. Dattu

M/s Kailash Store

Union of India

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Nature of Litigation

Arbitration dispute regarding the auction of a parking site.

Remedy Sought

The appellant sought the appointment of an Arbitrator to resolve disputes.

Filing Reason

The respondent failed to appoint an Arbitrator despite the invocation of the arbitration clause.

Previous Decisions

The High Court directed the appointment of an Arbitrator but limited the disputes to a specific issue.

Issues

Whether the High Court erred in restricting the disputes referred to the Arbitrator Whether the appointment of a new Arbitrator was justified

Submissions/Arguments

The appellant argued that all disputes should be referred to the Arbitrator The respondent had no objection to the appointment of Shri D.R. Bhatia as Arbitrator

Ratio Decidendi

The court emphasized the importance of comprehensive adjudication of all disputes under the arbitration agreement, rather than limiting the scope to specific issues.

Judgment Excerpts

The court has further observed, that, no other dispute is referred to the Arbitrator except the dispute regarding 20% less area allegedly handed over to the appellant/applicant. We appoint Shri D.R. Bhatia as the sole Arbitrator to decide all the disputes raised by the appellant in the petition filed under Section 11 of the Act as expeditiously as possible.

Procedural History

The appellant filed a petition under Section 11 of the Arbitration and Conciliation Act, 1996, which was decided by the High Court of Delhi, leading to the present appeal.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: Section 11
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