Case Note & Summary
The dispute arose between the petitioner, M/s. Shaf Broadcast Pvt. Ltd., and the respondent, Doordarshan, a constituent of Prasar Bharti, following a contract dated 08.03.2010 that included an arbitration clause. The petitioner invoked the arbitration clause on 14.01.2019 and nominated its arbitrator on 28.02.2019; however, the respondent failed to appoint its arbitrator. Consequently, the petitioner filed an application under Section 11 of the Arbitration & Conciliation Act, 1996, seeking the court's intervention to appoint an arbitrator on behalf of the respondent. During the hearing, all parties consented to modify the arbitration clause to appoint a Sole Arbitrator instead of a three-member tribunal. The court appointed Mr. Justice (Retd.) A. M. Sapre as the Sole Arbitrator, ensuring compliance with the requirements of independence and impartiality as per Section 12 of the Act. The arbitration proceedings were directed to be held in New Delhi, and the arbitrator was requested to complete the proceedings within the specified time limit. The court also directed that the arbitrator's fees be in accordance with the Fourth Schedule of the Arbitration and Conciliation Act, 1996. The parties were instructed to appear before the arbitrator on 15.11.2019, and the matter was disposed of accordingly.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Court's Authority - Arbitration and Conciliation Act, 1996, Section 11 - The petitioner sought the appointment of an arbitrator due to the respondent's failure to nominate one as per the arbitration agreement. The court, with the consent of all parties, appointed a Sole Arbitrator instead of a three-member tribunal, ensuring compliance with the Act's provisions regarding independence and impartiality. Held that the appointment was necessary to resolve the disputes effectively (Paras 1-6).
Issue of Consideration
Whether the court should appoint an arbitrator on behalf of the respondent under Section 11 of the Arbitration & Conciliation Act, 1996.
Final Decision
The court appointed Mr. Justice (Retd.) A. M. Sapre as the Sole Arbitrator, directing that the arbitration be conducted in New Delhi and completed within the specified time limit. The arbitrator's fees were to be in accordance with the Fourth Schedule of the Arbitration and Conciliation Act, 1996.
Law Points
- Arbitration agreement
- appointment of arbitrator
- modification of arbitration clause
- independence and impartiality of arbitrator
- seat of arbitration
