High Court Allows Petition Under Section 11(6) of Arbitration and Conciliation Act, 1996 for Appointment of Sole Arbitrator in Railway Contract Dispute. Court Appoints Retired Judge as Arbitrator After Respondents Failed to Appoint Arbitrator Despite Invocation of Arbitration Clause.

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

The petitioner, M/s Shri. Narasimhaswami Constructions, a partnership firm, entered into a contract agreement with the respondents, the South Western Railway, for construction works titled 'Arsiker-Birur patch doubling – Devanur yard re-modelling including formation, ballast, track linking, regarding construction of station building, FOB, Platform'. Disputes arose between the parties, and the petitioner invoked the arbitration clause contained in the agreement. However, the respondents did not appoint an arbitrator as per the agreed procedure. Consequently, the petitioner filed a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of a sole arbitrator. The court noted that the existence of the arbitration agreement was not disputed and that disputes had indeed arisen between the parties. The court found that the petitioner was entitled to the appointment of an arbitrator. Accordingly, the court appointed a retired judge of the High Court as the sole arbitrator to adjudicate the disputes between the parties. The court directed the arbitrator to enter upon the reference and make an award in accordance with law. The petition was allowed.

Headnote

A) Arbitration - Appointment of Arbitrator - Section 11(6) of the Arbitration and Conciliation Act, 1996 - Disputes arose between a contractor and the Railways regarding a construction contract - The petitioner invoked the arbitration clause but the respondents failed to appoint an arbitrator - The court held that since the existence of the arbitration agreement was not disputed and disputes had arisen, the petitioner was entitled to appointment of a sole arbitrator - The court appointed a retired judge as the sole arbitrator to adjudicate the disputes (Paras 1-3).

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Issue of Consideration

Whether the petitioner is entitled to appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 for resolution of disputes arising out of the contract agreement.

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Final Decision

The petition is allowed. The court appoints a retired judge of the High Court as the sole arbitrator to adjudicate the disputes between the parties. The arbitrator is directed to enter upon the reference and make an award in accordance with law.

Law Points

  • Section 11(6) of the Arbitration and Conciliation Act
  • 1996 empowers the court to appoint an arbitrator when the appointment procedure fails
  • existence of arbitration agreement is not disputed
  • and disputes have arisen.
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Case Details

2019 LawText (KAR) (01) 15

Civil Miscellaneous Petition No.25 of 2016

2019-01-02

Hon'ble Mr. Justice Dinesh Maheshwari, Chief Justice

Shri. Sampath Bapat (for petitioner), Shri. N.S. Sanjay Gowda (for respondents)

M/s Shri. Narasimhaswami Constructions

Union of India, represented by 1. The General Manager, South Western Railway, 2. The Chief Administrative Officer (Const.), South Western Railway, 3. The Chief Engineer (Const./North), South Western Railway, 4. The Deputy Chief Engineer (Const/North), South Western Railway

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Nature of Litigation

Civil miscellaneous petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of sole arbitrator.

Remedy Sought

Petitioner sought appointment of a sole arbitrator to resolve disputes arising out of the contract agreement with the respondents.

Filing Reason

Respondents failed to appoint an arbitrator despite invocation of the arbitration clause by the petitioner.

Issues

Whether the petitioner is entitled to appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996.

Submissions/Arguments

Petitioner submitted that disputes arose under the contract and arbitration clause was invoked but respondents did not appoint arbitrator. Respondents did not oppose the petition; existence of arbitration agreement was not disputed.

Ratio Decidendi

Under Section 11(6) of the Arbitration and Conciliation Act, 1996, when the appointment procedure fails and disputes exist, the court may appoint an arbitrator. Since the arbitration agreement was not disputed and disputes had arisen, the petitioner was entitled to appointment of a sole arbitrator.

Judgment Excerpts

By way of this application under Section 11 of the Arbitration and Conciliation Act, 1996 (‘the Act of 1996’), the petitioner has made a request for appointment of Sole Arbitrator to adjudicate upon and decide all its disputes with the respondents, arising out of, and relating to the Contract Agreement No.CAO/CN/BNC/73104/A/100/II/2010 dated 12.02.2010.

Procedural History

Petitioner filed C.M.P. No.25/2016 under Section 11(6) of the Arbitration and Conciliation Act, 1996 before the High Court of Karnataka. The petition was heard and reserved, and on 02.01.2019, the court pronounced the order allowing the petition.

Acts & Sections

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