Bombay High Court Dismisses Petition Challenging Arbitrator's Procedural Order in Arbitration Proceeding. Section 9 or Section 19 of Arbitration and Conciliation Act, 1996 Cannot Be Invoked to Challenge Arbitrator's Communication Regarding Procedure.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioner, Sahyadri Earthmovers, filed an Arbitration Petition under Section 9 read with Section 19 of the Arbitration and Conciliation Act, 1996, challenging a communication dated 17.08.2010 from the sole arbitrator (Respondent No.2) regarding the procedure to be followed in the arbitration proceedings. The petitioner sought directions to the arbitrator to formulate a legal procedure, record evidence under the Indian Evidence Act, and ensure compliance with public policy. The court, after hearing both parties, held that the petition was not maintainable. The court observed that Section 9 or Section 19 of the Act does not permit a party to challenge an order passed by the arbitrator pending proceedings, as such an order is neither a final award nor an interim award. The court emphasized Section 5 of the Act, which bars judicial intervention except where expressly provided. The court noted that the arbitrator is the master of his own procedure under Section 19, and no prescribed rules or guidelines exist for the arbitrator to follow. The petition was dismissed with no order as to costs.

Headnote

A) Arbitration Law - Maintainability of Petition - Section 9, Section 19, Section 5 of Arbitration and Conciliation Act, 1996 - Challenge to Arbitrator's Procedural Order - The petitioner sought to challenge a communication dated 17.08.2010 from the sole arbitrator regarding procedure. The court held that Section 9 or Section 19 does not permit a party to challenge an order passed by the arbitrator pending proceedings, as it is neither a final award nor an interim award. Section 5 bars judicial intervention except as provided. The petition was dismissed as not maintainable. (Paras 3-5)

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Issue of Consideration

Whether a petition under Section 9 read with Section 19 of the Arbitration and Conciliation Act, 1996 is maintainable to challenge a procedural communication from the arbitrator regarding the conduct of arbitration proceedings.

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Final Decision

The petition is dismissed as not maintainable. No order as to costs.

Law Points

  • Section 5 of the Arbitration and Conciliation Act
  • 1996 bars judicial intervention except as provided
  • Section 9 and Section 19 do not permit challenge to procedural orders of arbitrator
  • Arbitrator is master of own procedure under Section 19
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Case Details

2011 LawText (BOM) (03) 116

Arbitration Petition No. 1283 of 2010

2011-03-28

Anoop V. Mohta, J.

Mr. U. S. Samudrala for the petitioners, Ms. S.I. Joshi i/by M/s.S.I.Joshi & Co. for respondent no.1

Sahyadri Earthmovers

L & T Finance Limited & anr.

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Nature of Litigation

Arbitration petition challenging procedural communication from arbitrator

Remedy Sought

Petitioner sought directions to arbitrator to formulate legal procedure, record evidence under Indian Evidence Act, and stay arbitration proceedings

Filing Reason

Petitioner challenged communication dated 17.08.2010 from sole arbitrator regarding procedure

Issues

Whether a petition under Section 9 read with Section 19 of the Arbitration and Conciliation Act, 1996 is maintainable to challenge a procedural communication from the arbitrator.

Submissions/Arguments

Petitioner argued that arbitrator should be directed to follow proper legal procedure and record evidence as per Indian Evidence Act. Respondent opposed the petition, contending it was not maintainable.

Ratio Decidendi

Section 5 of the Arbitration and Conciliation Act, 1996 bars judicial intervention except as provided. Section 9 and Section 19 do not permit a party to challenge an order passed by the arbitrator pending proceedings, as such an order is neither a final award nor an interim award. The arbitrator is the master of his own procedure under Section 19.

Judgment Excerpts

Section 9 or Section 19 or any other Section under the Arbitration Act, nowhere permit a party to challenge such order passed by the Arbitrator pending the arbitration proceedings. Section 5 of the Arbitration Act is very clear... no judicial authority shall intervene except where so provided in this Part. Therefore, the present Petition as filed itself is not maintainable.

Procedural History

The petitioner filed Arbitration Petition No. 1283 of 2010 under Section 9 read with Section 19 of the Arbitration and Conciliation Act, 1996 challenging a communication dated 17.08.2010 from the sole arbitrator. The court heard the parties and dismissed the petition as not maintainable.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: Section 5, Section 9, Section 19, Section 34
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High Court Bombay High Court Dismisses Petition Challenging Arbitrator's Procedural Order in Arbitration Proceeding. Section 9 or Section 19 of Arbitration and Conciliation Act, 1996 Cannot Be Invoked to Challenge Arbitrator's Communication Regarding Procedure.