Case Note & Summary
The appellant, Sachin C. Shah, challenged an order dated 06/05/2015 passed by a learned Single Judge of the Bombay High Court. The dispute arose from a family settlement/MOU dated 09/03/1994. Initially, all parties had appointed Mr. Justice V.D. Tulzapurkar (Retd.) as the sole arbitrator. After his demise, Mr. Justice D.R. Dhanuka (Retd.) was appointed as substitute arbitrator. The appellant contended that his consent was not obtained for this substitution. The court examined Section 15 of the Arbitration and Conciliation Act, 1996, which governs the substitution of arbitrators. The court held that the consent of all parties is mandatory for such substitution. Since the appellant's consent was not obtained, the appointment of Mr. Justice D.R. Dhanuka (Retd.) was invalid. Consequently, the appeal was allowed, and the impugned order was set aside.
Headnote
A) Arbitration - Substitution of Arbitrator - Section 15 of the Arbitration and Conciliation Act, 1996 - Consent of Parties - The court considered whether the appointment of a substitute arbitrator without the consent of all parties is valid. The appellant contended that his consent was not obtained for the appointment of Mr. Justice D.R. Dhanuka (Retd.) as the sole arbitrator after the demise of the original arbitrator. The court held that under Section 15, the consent of all parties is mandatory for substitution, and the appointment without such consent is invalid. The impugned order was set aside. (Paras 1-3)
Issue of Consideration
Whether the appointment of a substitute arbitrator without the consent of all parties is valid under Section 15 of the Arbitration and Conciliation Act, 1996
Final Decision
Appeal allowed. Impugned order dated 06/05/2015 set aside.
Law Points
- Consent of all parties is mandatory for substitution of arbitrator under Section 15 of the Arbitration and Conciliation Act
- 1996
- Appointment of arbitrator without consent is invalid
- Order appointing arbitrator set aside
Case Details
2016 LawText (BOM) (09) 59
Appeal (L) No. 571 of 2015 in Arbitration Petition No. 974 of 2011
V. M. Kanade, Mrs. Swapna Joshi
Mr. N. Ganpanthy Senior Counsel a/w Mr Sanjay Sareen, Mr. Prayag Joshi i/b Mr. Bipin Joshi for the Appellant; Mr. Rafique Dada, Senior Counsel a/w Mr. Riyaz Chagla, Mr. Vibhav Krishna Devang Lakhotia i/b Juris Consillis for Respondent Nos. 1 to 5
Hemant D. Shah, Kokila H. Shah, Samir H. Shah, Vipul H. Shah, Hemant D. Shah (HUF), Chittaranjan D. Shah, Dr. Viral C. Shah, Parul V. Shah, Chittaranjan D. Shah (HUF), Gayatri R. Shah
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Appeal against order appointing substitute arbitrator without consent
Remedy Sought
Setting aside of the order appointing Mr. Justice D.R. Dhanuka (Retd.) as sole arbitrator
Filing Reason
Appellant's consent was not obtained for substitution of arbitrator
Previous Decisions
Order dated 06/05/2015 by learned Single Judge appointing substitute arbitrator
Issues
Whether the appointment of a substitute arbitrator without the consent of all parties is valid under Section 15 of the Arbitration and Conciliation Act, 1996
Submissions/Arguments
Appellant argued that his consent was not obtained for appointment of substitute arbitrator
Respondents argued that consent was not required
Ratio Decidendi
Under Section 15 of the Arbitration and Conciliation Act, 1996, the consent of all parties is mandatory for substitution of an arbitrator. Appointment without such consent is invalid.
Judgment Excerpts
Appellant herein is the son of Chittaranjan D. Shah who is the Appellant in connected Appeal (L) No.572 of 2015.
His contention is that after the sole Arbitrator Mr. Justice V.D. Tulzapurkar (Retd.) passed away and Mr. Justice D.R. Dhanuka (Retd.) was appointed in his place, at that time his consent for appointment of Mr. Justice D.R. Dhanuka (Retd.) was not obtained.
Procedural History
The appellant filed Arbitration Petition No. 974 of 2011. The learned Single Judge passed an order on 06/05/2015 appointing Mr. Justice D.R. Dhanuka (Retd.) as substitute arbitrator. The appellant appealed against that order.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 15
