Case Note & Summary
The dispute arose from multiple civil appeals concerning the appointment of arbitrators under the Arbitration and Conciliation Act, 1996. The Northern Railway Administration appealed against the appointments made by the High Court, which were challenged on the grounds of not adhering to the qualifications and considerations outlined in the arbitration agreements. The Supreme Court noted that two conflicting views existed in previous judgments regarding the interpretation of Section 11(6) of the Act, necessitating a larger bench's review. The court highlighted that the parties are free to agree on a procedure for appointing arbitrators, but if that procedure fails, the Chief Justice or designated person may be requested to take necessary measures. The court emphasized that the appointment of arbitrators must consider the qualifications required by the agreement and ensure the appointment of an independent and impartial arbitrator. The Supreme Court found that the High Court had not adequately focused on these requirements, leading to the vulnerability of the appointments made. Consequently, the court set aside the appointments and remitted the matters back to the High Court for fresh appointments, ensuring adherence to the parameters discussed. The appeals were disposed of with this direction.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Scope of Section 11(6) - Arbitration and Conciliation Act, 1996, Section 11(6) - The court examined the appointment of arbitrators under Section 11(6) and emphasized that the agreed procedure must be exhausted before seeking court intervention. The court held that the High Court failed to consider the qualifications required by the agreement, making the appointments vulnerable. Fresh appointments were directed to be made by the High Court (Paras 13-14).
Issue of Consideration
Whether the High Court properly considered the qualifications and other necessary factors in appointing arbitrators under Section 11 of the Arbitration and Conciliation Act, 1996.
Final Decision
The Supreme Court set aside the appointments made by the High Court and remitted the matters for fresh appointments, emphasizing the need to adhere to the qualifications and considerations outlined in the arbitration agreements.
Law Points
- Arbitration
- appointment of arbitrator
- Section 11
- due regard
- independent arbitrator
