Back
IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
Thapar Builders Private Limited - Appellant
Versus
Thomas And Company Pvt Ltd . - Respondent
O.M.P. (T) (Comm.) 72/2021
Decided On : 31-08-2021
Arbitration - Appointment of Substituted Arbitrator - The court appointed a substituted Arbitrator, Justice (Retd.) Mool Chand Garg, to adjudicate the disputes between the parties under the Delhi International Arbitration Centre (DIAC) in accordance with the schedule of fees prescribed under the DIAC rules.
Fact of the Case:
The petitioner filed a petition seeking appointment of a Sole Arbitrator under substitution after the initially appointed sole Arbitrator conveyed his inability to act due to a conflict of interest.
Finding of the Court:
The court appointed a substituted Arbitrator, Justice (Retd.) Mool Chand Garg, to adjudicate the disputes between the parties. The arbitration shall be conducted under the Delhi International Arbitration Centre (DIAC) and the fee of the Arbitrator shall be in accordance with the schedule of fees prescribed under the DIAC rules.
Issues: Appointment of Substituted Arbitrator under Section 15(2) of the Arbitration and Conciliation Act, 1996.
Ratio Decidendi: The court has the authority to appoint a substituted Arbitrator when the initially appointed Arbitrator conveys inability to act due to a conflict of interest.
Final Decision: The court appointed Justice (Retd.) Mool Chand Garg as the substituted Arbitrator to adjudicate the disputes between the parties under the DIAC rules.
JUDGMENT
(Oral)
1. The present petition has been filed by the petitioner under Section 15(2) of the Arbitration and Conciliation Act, 1996 seeking appointment of a Sole Arbitrator under substitution.
2. Learned counsel for petitioner submits that vide order and judgment dated 17.02.2021, this Court appointed Justice (Retd.) G.S. Sistani sole Arbitrator to adjudicate the dispute that had arisen between the parties.
3. Thereafter, vide email dated 25.03.2021 the sole Arbitrator informed the counsel for the petitioner and respondent about his inability to act as an Arbitrator, as his son had previously appeared for one of the parties.
4. Learned counsel for petitioner submits that a substituted Arbitrator may be appointed in terms of Order and Judgment dated 17.02.2021, as Justice (Retd.) G.S. Sistani has recused and conveyed his inability to act as an Arbitrator.
5. The aforesaid submission is affirmed by learned counsel for respondent who submits that there is no objection to appointment of substituted Arbitrator.
6. Accordingly, Justice (Retd.) Mool Chand Garg (Mobile: 9899337979) is appointed sole Arbitrator to adjudicate the disputes between the parties.
7. The arbitration shall be conducted under the Delhi International Arbitration Centre (DIAC). The fee of the Arbitrator shall be in accordance with the schedule of fees prescribed under the Delhi International Arbitration Centre (DIAC) (Internal Management) Rules and Delhi International Arbitration Centre (Administrative Cost and Arbitrators’ Fees) Rules, 2018.
8. The learned Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act, 1996 before commencing the arbitration. Needless to say, all issues are left open for adjudication and consideration by the learned Arbitrator.
9. A copy of this order be sent to the learned Arbitrator for information.
10. The petition is accordingly disposed of.
The court has the authority to appoint a substituted Arbitrator when the initially appointed Arbitrator conveys inability to act due to a conflict of interest.
The court ruled that a substituted Arbitrator may be appointed under Section 15(2) of the Arbitration and Conciliation Act, emphasizing the need for the Arbitrator's impartiality and independence.
The court verified the need for appointing a new Sole Arbitrator due to the incumbent's inability to continue, ensuring a fair arbitration process as per Section 15(2) of the Arbitration and Concilia....
The court has the authority to appoint a substituted arbitrator at the joint request of counsel representing both sides, and the appointed arbitrator must ensure compliance with Section 12 of the arb....
An arbitrator cannot be unilaterally appointed in violation of Section 12(5) of the Arbitration and Conciliation Act, 1996; such an appointment is unsustainable.
A substituted arbitrator can be appointed under the Arbitration and Conciliation Act, 1996, following the demise of the previous arbitrator without objection from the parties involved.
The main legal point established is the court's authority to appoint a substituted Arbitrator under the provisions of the Arbitration and Conciliation Act, 1996 following the demise of the previous A....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
