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ABHAY S. OKA, UJJAL BHUYAN
Vidyawati Construction Company – Appellant
Versus
Union of India – Respondent
JUDGMENT
ABHAY S. OKA, J.
1. Leave granted.
2. Heard the learned senior counsel appearing for the appellant and the learned ASG appearing for the respondent.
3. The respondent executed a contract in favour of the appellant to construct a building for the office of the General Manager, Railway Electrification Project, Allahabad. There was a dispute regarding the amount to be paid to the appellant under the contract. The contract provided for appointing an Arbitral Tribunal consisting of three Arbitrators. Initially, on an application made by the respondent, the learned Chief Justice of the High Court appointed two Arbitrators with a direction to them to appoint an Umpire. As the Arbitrators did not nominate the Umpire, the respondent filed another application before the learned Chief Justice. Ultimately, an order was passed appointing one Shri P.K. Sharma as the Umpire.
4. Subsequently, the said Shri P.K. Sharma resigned. Therefore, the appellant filed an application seeking modification of the earlier order contending that a presiding Arbitrator may be appointed who may not belong to any Government department. On that application, on 26th September, 2003, the learned Chief Justice appoi
A party cannot challenge the jurisdiction of an Arbitral Tribunal after submitting a statement of defence, as per Section 16(2) of the Arbitration and Conciliation Act, 1996.
The appointment of a sole arbitrator deviated from the statutory requirements and terms of the arbitration agreement, making proceedings invalid under the Arbitration and Conciliation Act, 1996.
The court affirmed that improper appointment of an arbitrator renders the award unsustainable, regardless of jurisdictional issues.
The main legal point established in the judgment is that objections to jurisdiction must be raised at the appropriate stage, and the findings of the arbitrator on the point of jurisdiction, if not ch....
Participation in arbitration without objection constitutes a waiver of the right to challenge the appointment of the arbitrator, as per Sections 4 and 12 of the Arbitration and Conciliation Act.
The appointment of the arbitrator must adhere to the terms of the arbitration agreement, and challenges to the appointment must fall within the exhaustive grounds enumerated in Section 34(2) of the 1....
A party cannot challenge jurisdiction after previously admitting the existence of an arbitration agreement and participating in arbitration proceedings.
Jurisdictional objections to arbitration awards must be raised during proceedings, not at execution; failure to do so leads to unenforceable awards.
The main legal point established in the judgment is the significance of parties' consent in appointing arbitrators and the consequences of their conduct in adhering to the arbitration agreement.
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