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 the Arbitration and Conciliation Act, 1996. The respondent had submitted a tender for the supply of batteries, leading to a rate contract that included a price variation clause. Disputes emerged over the non-issuance of amendments related to price variations, prompting the respondent to send notices invoking arbitration. After the appellant failed to appoint an arbitrator within the stipulated time, the respondent filed a Section 11(6) petition in the High Court, which appointed a retired judge as the arbitrator. The appellant contested this, arguing that the appointment did not comply with the contract's arbitration clause. The court analyzed the legal framework surrounding the appointment of arbitrators, particularly focusing on the implications of filing a Section 11(6) petition. It concluded that the right to appoint an arbitrator ceased for the appellant once the petition was filed, rendering their subsequent appointment invalid. The appeal was dismissed, affirming the High Court's decision without costs.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Jurisdictional Authority - 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, holding that the appointment of Dr. Gita Rawat as a sole arbitrator by the appellant after the filing of the Section 11(6) petition was without jurisdiction, as the right to appoint an arbitrator ceased upon the filing of the petition.
Law Points
- Arbitration
- Appointment of Arbitrator
- Section 11(6) Arbitration and Conciliation Act
- 1996
- Jurisdictional Authority
- Price Variation Clause
