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PRAKASH SHRIVASTAVA
Civon Construction Pvt. Ltd. – Appellant
Versus
Ircon International Limited – Respondent
JUDGMENT
Prakash Shrivastava, CJ. - This application under Section 11(6) of the arbitration and Conciliation act, 1996 has been made by the applicant for appointment of sole arbitrator to resolve the dispute.
2. Undisputedly, the Letter of acceptance dated 03rd May, 2016 was issued by the respondent in favour of the applicant accepting the tender and awarding the contract for the work specified in Clause 2 of the LOa. The dispute had arisen between the parties, therefore, in terms of general conditions of contract, applicant had exhausted the remedy of settlement and conciliation. The relevant clause relating to arbitration is as under:
'73.2 Conciliation/arbitration
73.2.1 It is a term of this contract that Conciliation/arbitration of disputes shall not be commenced unless an attempt has first been made by the parties to settle such disputes, within 120 days of submission of monthly statement of such claim, through mutual settlement.
73.2.2 In the event of failure to resolve any dispute or difference between the parties hereto as to the construction or operation of this contract, or the respective rights and liabilities of the parties on any matter in question, dispute or difference on
Failure to give notice invoking the arbitration Clause renders the application under Section 11 premature.
The appointment of the arbitrator must be in accordance with the arbitration agreement and must satisfy the provisions of the arbitration act.
Failure to appoint an arbitrator within the stipulated time results in the loss of the right to make the appointment. Appointment of an arbitrator by an ineligible person is void ab initio.
The Court has the independent authority to appoint an arbitrator under Section 11 of the Arbitration Act regardless of the parties' proposed panel of arbitrators.
The power of the court to appoint an arbitrator under Section 11(6) of the Arbitration Act cannot be restricted by any panel of arbitrators suggested by one party or the other.
The main legal point established in the judgment is the ineligibility of the appointed arbitrator under Section 12(5) read with Schedule VII of the Arbitration Act and the requirement for a panel of ....
Compliance with Section 21 for notice invoking the arbitration clause is necessary for arbitration proceedings to commence.
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