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SUPREME COURT OF INDIA
Surinder Singh Nijjar, J.
Reliance Industries Ltd. & Ors. - Appellants
Vs.
Union of India (UOI) - Respondent
Arbitration Petition No. 27 of 2013
Decided On : 29-04-2014
Arbitration - Appointment of Arbitrator - Withdrawal of earlier appointment and subsequent appointment of new arbitrator
Fact of the Case:
The court withdrew the appointment of an arbitrator from the list submitted by the parties and appointed a new arbitrator as the Chairman of the Arbitral Tribunal.
Finding of the Court:
The court found that the earlier appointment of the arbitrator was not in line with the court's earlier observations and therefore withdrew the appointment. The court also made it clear that all issues between the parties are kept open and the Arbitral Tribunal shall proceed being wholly uninfluenced by any observation made in the judgment.
Issues: Appointment of arbitrator, influence of court's observation on Arbitral Tribunal
Ratio Decidendi: The court has the authority to withdraw an earlier appointment of an arbitrator if it is not in line with its observations. The Arbitral Tribunal should proceed without being influenced by any observation made in the judgment.
Final Decision: The court withdrew the earlier appointment of the arbitrator and appointed a new arbitrator as the Chairman of the Arbitral Tribunal. All issues between the parties are kept open and the Arbitral Tribunal is directed to proceed without being influenced by any observation made in the judgment.
ORDER :
Surinder Singh Nijjar, J.
On 2nd April, 2014, this Court has passed the following order:
It has been pointed out that, in judgment dated 31st March, 2014 delivered in Arbitration Petition No. 27 of 2013, in spite of my earlier observations that I shall not appoint an Arbitrator from either of the list submitted by the parties, the Arbitrator actually appointed happens to be on the list of the Petitioners.
In that view of the matter, the aforesaid direction appointing Honourable James Spigelman AC QC, former Chief Justice and Lieutenant Governor of New South Wales, Australia as the third Arbitrator is hereby withdrawn. The substitute Arbitrator shall be appointed subsequently by a separate order.
It is also made clear that all issues arising between the parties are specifically kept open and the Arbitral Tribunal shall proceed being wholly uninfluenced by any observation made in the judgment.
2. In furtherance of the aforesaid order, I hereby appoint Honourable Michael Hudson McHugh, AC QC, former Judge of the High Court of Australia and former Non-permanent Justice of the Court of Final Appeal in Hong Kong as the third arbitrator, who shall act as the Chairman of the Arbitral Tribunal.
3. The E-mail address of the aforesaid third arbitrator is as follows:
mhmch@wentworthchambers.com.au
4. Let the orders dated 31st March, 2014, 2nd April, 2014 and 29th April, 2014 be stitched together.
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