High Court Appoints Arbitrator in Contract Dispute Between Power Solutions Company and Electricity Supply Company. Petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 allowed due to failure of respondent to appoint arbitrator as per clause 4.1 of contract agreement dated 28.03.2018.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Prosecution
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Case Note & Summary

The petitioner, M/s Nsure Reliable Power Solutions Pvt Ltd, a private limited company engaged in infrastructure business, participated in a tender floated by the respondent, Hubli Electricity Supply Company Ltd. A contract agreement was executed on 28.03.2018 between the parties. Disputes arose between them, and the petitioner invoked the arbitration clause (clause 4.1) of the agreement. The respondents failed to appoint an arbitrator, prompting the petitioner to file a civil miscellaneous petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator. The court, after hearing the parties, found that an arbitration agreement existed and the respondents had not appointed an arbitrator. The court allowed the petition and appointed an arbitrator to adjudicate the disputes between the parties.

Headnote

A) Arbitration Law - Appointment of Arbitrator - Section 11(6) of the Arbitration and Conciliation Act, 1996 - The petitioner sought appointment of an arbitrator as per clause 4.1 of the contract agreement dated 28.03.2018 to resolve disputes with the respondents. The court considered the existence of an arbitration agreement and the failure of the respondents to appoint an arbitrator. Held that the petition is allowed and an arbitrator is appointed to adjudicate the disputes (Paras 1-3).

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Issue of Consideration

Whether an arbitrator should be appointed under Section 11(6) of the Arbitration and Conciliation Act, 1996, to adjudicate disputes arising from a contract agreement dated 28.03.2018.

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Final Decision

The petition is allowed. An arbitrator is appointed to adjudicate the disputes between the petitioner and respondents as per clause 4.1 of the contract agreement dated 28.03.2018.

Law Points

  • Section 11(6) of the Arbitration and Conciliation Act
  • 1996
  • Appointment of Arbitrator
  • Existence of Arbitration Agreement
  • Dispute Resolution
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Case Details

2022 LawText (KAR) (04) 8

CIVIL MISC PETITION NO. 100009 OF 2022

2022-04-21

SURAJ GOVINDARAJ

SRI. K L PATIL, SRI. S. S. BETURMATH, SMT.P. S. TADAPATRI, SRI.B. G. INDI, SRI. S. A. SONDUR (for petitioner); SRI.B. S. KAMATE (for respondents)

M/S NSURE RELIABLE POWER SOLUTIONS PVT LTD.

HUBLI ELECTRICITY SUPPLY COMPANY LTD. AND ANOTHER

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Nature of Litigation

Civil Miscellaneous Petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of an arbitrator.

Remedy Sought

Petitioner seeks appointment of an arbitrator as per clause 4.1 of the contract agreement dated 28.03.2018 to adjudicate disputes between the parties.

Filing Reason

Disputes arose between the petitioner and respondents under the contract agreement dated 28.03.2018, and the respondents failed to appoint an arbitrator despite invocation of the arbitration clause.

Issues

Whether an arbitrator should be appointed under Section 11(6) of the Arbitration and Conciliation Act, 1996.

Submissions/Arguments

Petitioner argued that disputes arose under the contract and the respondents failed to appoint an arbitrator as per clause 4.1. Respondents opposed the petition, but the court found that an arbitration agreement existed and the respondents had not appointed an arbitrator.

Ratio Decidendi

Under Section 11(6) of the Arbitration and Conciliation Act, 1996, if a party fails to appoint an arbitrator as per the arbitration agreement, the court may appoint an arbitrator to resolve the disputes.

Judgment Excerpts

The Petitioner is before this Court seeking for the following reliefs: A. To appoint the Arbitrator as contemplated under the clause 4.1 of the contract agreement dated 28.03.2018, to adjudicate the dispute between the Petitioner and Respondents in the interest of justice.

Procedural History

The petitioner filed a civil miscellaneous petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator. The court heard the matter and passed the order on 21.04.2022.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: 11(6)
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