Case Note & Summary
The case involved a dispute between two companies regarding an arbitration agreement. The appellant, Asian Thermal Insulation (I) P. Ltd, received a work order from the respondent, Bridge & Roof Co. (I) Ltd, which included an arbitration clause. Following a notice of demand that was refused, the respondent sought judicial intervention for the appointment of an arbitrator. The High Court's order was challenged, leading to the Supreme Court's examination of the powers of the Chief Justice under the Arbitration and Conciliation Act, 1996. The court analyzed previous judgments, particularly SBP & Co. v. Patel Engineering Ltd., which clarified that the Chief Justice's role in appointing arbitrators is judicial in nature. The court concluded that the Chief Justice could only delegate this power to another judge and that all previous appointments made under the now-overruled interpretation would remain valid. The parties agreed on a new arrangement for appointing arbitrators, which the court accepted, disposing of the appeal without costs.
Headnote
A) Arbitration Law - Judicial vs Administrative Power - Chief Justice's Authority under Section 11(6) - Arbitration and Conciliation Act, 1996, Section 11 - The court clarified that the power exercised by the Chief Justice under Section 11(6) is judicial, not administrative, and can only be delegated to another judge of the High Court or Supreme Court. The court also held that the appointments made under the previous interpretation of the law would remain valid, and future applications would follow the clarified judicial approach (Paras 4-5).
Issue of Consideration
Whether the Chief Justice of the High Court has judicial or administrative power under Section 11(6) of the Arbitration and Conciliation Act, 1996.
Final Decision
The Supreme Court disposed of the appeal, directing that the appellant nominate an arbitrator and the respondent do so within 30 days, with the Chief Justice of the High Court to appoint a Presiding Arbitrator.
Law Points
- Arbitration
- Judicial Power
- Section 11
- Chief Justice Authority
- Appointment of Arbitrators
