Case Note & Summary
The case involved an appeal against an order by the Chief Justice of the Allahabad High Court appointing an arbitrator in a dispute arising from a partnership deed. The appellants contended that the appointment was invalid due to lack of notice to all parties and absence of a reasoned order. The Supreme Court noted that the Chief Justice's order did not adhere to the requirements established in SBP & Co. vs. Patel Engineering Ltd., which clarified that the power to appoint an arbitrator is judicial and must be exercised with due consideration of all parties' claims. The Court found that notice had not been served on most respondents and that the Chief Justice had not allowed adequate time for objections. Consequently, the Supreme Court set aside the impugned order and remitted the matter back to the High Court for a fresh order, allowing the parties to file objections within four weeks. The appeal was allowed without costs.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Requirement of Reasoned Order - Arbitration and Conciliation Act, 1996, Section 11 - The Chief Justice of the High Court failed to provide a reasoned order for appointing an arbitrator and did not verify if all parties were duly notified. The Supreme Court held that such procedural lapses necessitated setting aside the appointment and remitting the matter for fresh consideration (Paras 8-10).
Issue of Consideration
Whether the appointment of an arbitrator by the Chief Justice of the High Court was valid given the lack of notice to all parties and absence of a reasoned order.
Final Decision
The Supreme Court set aside the impugned order dated 09.12.2005 and remitted the matter to the High Court for a fresh order, allowing parties to file objections within four weeks.
Law Points
- Judicial power
- Appointment of Arbitrator
- Section 11
- Arbitration and Conciliation Act
- 1996
- Reasoned order requirement
