Case Note & Summary
The petitioner, M/s Shri. Narasimhaswami Constructions, a partnership firm, filed a Civil Miscellaneous Petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator to resolve disputes with the respondents, who are officials of the South Western Railway. The dispute arose out of a contract agreement dated 12.02.2010 for works titled 'Arsiker-Birur patch doubling – Devanur yard re-modelling including formation, ballast, track linking, regarding construction of station building, FOB, Platform'. The petitioner contended that despite the existence of an arbitration clause in the agreement, the respondents failed to appoint an arbitrator, necessitating the court's intervention. The respondents opposed the petition, arguing that the disputes were not arbitrable or that the petitioner had not followed the proper procedure. The court, after hearing both sides, held that the arbitration agreement existed and that disputes had arisen, thus appointing a sole arbitrator to adjudicate the matter. The court directed the appointment of a retired judge or a senior advocate as arbitrator, with the parties to bear the costs equally.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11(6) of the Arbitration and Conciliation Act, 1996 - Existence of Arbitration Agreement - The petitioner sought appointment of a sole arbitrator to resolve disputes arising from a contract agreement with the respondents. The court found that the agreement contained an arbitration clause and that disputes had arisen, thus appointing a sole arbitrator. (Paras 1-3)
Issue of Consideration
Whether a sole arbitrator should be appointed under Section 11(6) of the Arbitration and Conciliation Act, 1996, to adjudicate disputes arising out of a contract agreement between the petitioner and the respondents.
Final Decision
The court allowed the petition and appointed a sole arbitrator to adjudicate the disputes between the parties. The arbitrator shall be a retired judge of the High Court or a senior advocate, and the parties shall bear the costs equally.
Law Points
- Section 11 of the Arbitration and Conciliation Act
- 1996
- Appointment of Arbitrator
- Existence of Arbitration Agreement
- Dispute Resolution
Case Details
2019 LawText (KAR) (01) 65
Civil Miscellaneous Petition No.25 of 2016
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 seeks appointment of a sole arbitrator to resolve disputes arising out of contract agreement No.CAO/CN/BNC/73104/A/100/II/2010 dated 12.02.2010.
Filing Reason
Disputes arose between the parties regarding the contract works, and the respondents failed to appoint an arbitrator despite the arbitration clause.
Issues
Whether the arbitration agreement exists between the parties.
Whether the court should appoint a sole arbitrator under Section 11(6) of the Act.
Submissions/Arguments
Petitioner argued that the contract contains an arbitration clause and disputes have arisen, but respondents failed to appoint an arbitrator.
Respondents opposed the petition, contending that the disputes are not arbitrable or that proper procedure was not followed.
Ratio Decidendi
Under Section 11(6) of the Arbitration and Conciliation Act, 1996, where an arbitration agreement exists and a party fails to appoint an arbitrator, the court may appoint an arbitrator to resolve the disputes.
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
The petitioner filed C.M.P. No.25/2016 under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator. The petition was heard and reserved, and the order was pronounced on 02.01.2019.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 11, Section 11(6)
