Supreme Court Appoints Sole Arbitrator in Construction Dispute — Arbitration Process Initiated. The court directed the appointment of Mr. Satish Chandar as the sole arbitrator to resolve disputes arising from a construction contract, ensuring compliance with the arbitration clause.

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Case Note & Summary

The dispute arose between a contractor and the Army Welfare Housing Organisation regarding a construction contract awarded on 8.5.1990. The contract included an arbitration clause stipulating that disputes would be referred to a sole arbitrator appointed by the Chairman of the Army Welfare Housing Organisation. Following a court order on 17.5.2006, the respondent submitted an affidavit nominating three potential arbitrators. The appellant's counsel selected Mr. Satish Chandar from the panel, and both parties agreed to his appointment as the sole arbitrator. The court directed that the sole arbitrator adjudicate the disputes from the point where the previous arbitrator had left off and complete the proceedings within six months. The interim order was vacated, and the sole arbitrator was instructed to submit his award to the court.

Headnote

A) Arbitration Law - Appointment of Sole Arbitrator - Nomination of Arbitrator - Arbitration Agreement - The court directed the appointment of a sole arbitrator to resolve disputes as per the arbitration clause in the contract. The parties consented to the nomination of Mr. Satish Chandar as the sole arbitrator, who is to adjudicate the disputes from the stage where the previous arbitrator could not proceed. The sole arbitrator is required to complete the arbitration proceedings within six months from the date of entering upon the reference (Paras 1-3).

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Issue of Consideration

Whether the court should appoint a sole arbitrator to adjudicate the disputes between the parties as per the arbitration clause in the contract.

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Final Decision

The court appointed Mr. Satish Chandar as the sole arbitrator to adjudicate the disputes between the parties, directing him to complete the arbitration proceedings within six months and submit his award to the court.

Law Points

  • Arbitration agreement
  • Sole arbitrator appointment
  • Compliance with court directions
  • Arbitration proceedings timeline
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Case Details

2006 LawText (SC) (05) 4

Appeal (civil) 5352 of 2002

2006-05-25

Dr. AR. Lakshmanan, Lokeshwar Singh Panta

Mr. P.N. Kumar, Mr. Arvind Kumar Tewari

M/S. KLASSIC CONSTRUCTION PVT. LTD.

M/S. ARMY WELFARE HOUSING ORGANISATION

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Nature of Litigation

Dispute regarding the execution of a construction contract and appointment of an arbitrator.

Remedy Sought

Appointment of a sole arbitrator to adjudicate disputes.

Filing Reason

Dispute arose from the execution of construction works under the contract.

Previous Decisions

Court directed the appointment of an arbitrator as per the arbitration clause.

Issues

Appointment of sole arbitrator Compliance with arbitration agreement

Submissions/Arguments

Appellant's counsel suggested Mr. Satish Chandar as sole arbitrator. Respondent's counsel had no objection to the nomination.

Ratio Decidendi

The court emphasized the importance of adhering to the arbitration agreement and the necessity of appointing a sole arbitrator to ensure resolution of disputes in a timely manner.

Judgment Excerpts

The court directed the appointment of a sole arbitrator to resolve disputes as per the arbitration clause in the contract. The parties consented to the nomination of Mr. Satish Chandar as the sole arbitrator.

Procedural History

The appeal was filed regarding the appointment of an arbitrator as per the arbitration clause in the contract. The court issued directions on 17.5.2006 for the respondent to submit a panel of names for the appointment of a sole arbitrator.

Acts & Sections

  • Society Registration Act:
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