Case Note & Summary
The dispute arose between the Union of India and M/s. Bharat Battery Manufacturing Co. (P) Ltd. regarding the appointment of an arbitrator under a rate contract for the supply of batteries. The respondent filed a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, after the appellant failed to appoint an arbitrator within the stipulated time following notices sent by the respondent. The High Court appointed Justice K.S. Gupta as the arbitrator, which the appellant contested, arguing that the appointment did not comply with the arbitration clause in the agreement. The court analyzed the timeline of events, noting that the appellant's appointment of Dr. Gita Rawat as an arbitrator occurred after the respondent filed the Section 11(6) petition, which the court found to be impermissible. The court referenced previous judgments to clarify that the right to appoint an arbitrator under the agreement ceases once a Section 11(6) petition is filed. Ultimately, the Supreme Court dismissed the appeal, affirming the High Court's decision and stating that the appellant's actions were without jurisdiction.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Jurisdictional Issue - Arbitration and Conciliation Act, 1996, Section 11(6) - The court held that once a Section 11(6) petition is filed, the right of the other party to appoint an arbitrator ceases, making any subsequent appointment invalid. The appellant's appointment of an arbitrator after the petition was filed was deemed without jurisdiction (Paras 9-16).
Issue of Consideration
Whether the appointment of an arbitrator by the appellant after the filing of a Section 11(6) petition was permissible.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's order appointing Justice K.S. Gupta as the arbitrator, and held that the appellant's subsequent appointment of Dr. Gita Rawat was without jurisdiction.
Law Points
- Arbitration
- appointment of arbitrator
- Section 11(6) Arbitration and Conciliation Act
- 1996
- jurisdiction of court
- arbitration agreement
