Case Note & Summary
The petitioner, M/s. Eagle – MPCC (J.V.), a joint venture company, entered into a contract with the respondent, South Western Railway, on 08/03/2011 for construction work. Disputes arose between the parties, and the petitioner invoked the arbitration clause. The respondent unilaterally appointed a retired District Judge as the sole arbitrator. The petitioner objected to this appointment on the ground that it was unilateral and lacked independence and impartiality. The petitioner filed two petitions under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of an independent and impartial arbitrator. The court considered the submissions of both parties. The senior counsel for the petitioner argued that the unilateral appointment by the respondent was invalid and that an independent arbitrator should be appointed. The counsel for the respondent contended that the appointment was valid under the contract. The court held that the unilateral appointment of an arbitrator by one party is not valid as it compromises the independence and impartiality of the arbitrator. The court appointed a former judge of the High Court of Karnataka, Justice A.N. Venugopala Gowda, as the sole arbitrator to adjudicate the disputes. The court directed the arbitrator to enter upon reference and make the award within the time stipulated under the Act. The petitions were allowed.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11(6) Arbitration and Conciliation Act, 1996 - Unilateral Appointment - The petitioner sought appointment of an independent arbitrator after the respondent unilaterally appointed a retired District Judge as arbitrator. The court held that such unilateral appointment is invalid and appointed a former High Court judge as sole arbitrator to ensure independence and impartiality. (Paras 1-10) B) Arbitration Law - Independence and Impartiality - Section 11(6) Arbitration and Conciliation Act, 1996 - The court emphasized that an arbitrator must be independent and impartial, and unilateral appointment by one party vitiates the arbitral process. The court appointed a former judge of the High Court of Karnataka as the sole arbitrator. (Paras 1-10)
Issue of Consideration
Whether the petitioner is entitled to appointment of an independent and impartial arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, given that the respondent's unilateral appointment of an arbitrator was invalid.
Final Decision
The court allowed the petitions and appointed Justice A.N. Venugopala Gowda, former Judge of the High Court of Karnataka, as the sole arbitrator to adjudicate the disputes between the parties. The arbitrator was directed to enter upon reference and make the award within the time stipulated under the Act.
Law Points
- Section 11(6) of Arbitration and Conciliation Act
- 1996
- Appointment of arbitrator
- Unilateral appointment invalid
- Independence and impartiality of arbitrator
