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NAVIN CHAWLA
Chabbras Associates – Appellant
Versus
Hscc India Limited – Respondent
JUDGMENT :
Navin Chawla, J.
1. This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the ‘Act’) seeking appointment of an Arbitrator for adjudicating the disputes that have arisen between the parties with respect to the Contract dated 18.09.2018 for Construction of Phase-II works comprising Director’s Residence, Type II, III, IV and V Residential quarters for National Institute of Animal Biotechnology (NIAB) at Hyderabad.
2. The learned counsel for the respondents submits that the present petition is premature as the petitioner has not followed the procedure prescribed for appointment of an Arbitrator. Drawing reference to Clause 25 of the General Conditions of Contract (in short, the ‘GCC’), he submits that prior to invoking arbitration, the petitioner has to raise its disputes with the Reviewing Authority, and if it is dissatisfied with its decision, approach the Appealing Authority. If the petitioner still is dissatisfied with the decision of Appealing Authority, the petitioner has to raise its dispute with the Dispute Redressal Committee (in short, the ‘DRC’). It is only where the petitioner or the respondent is dis
The Conciliation process mentioned in the Contract was not mandatory and could not affect the petitioner's right to invoke the Arbitration Agreement, especially when there was justified urgency to pr....
The right to invoke an arbitration agreement accrues upon the denial of a payment demand, and subsequent proceedings cannot nullify this right.
The conciliation process under the Arbitration Agreement was not mandatory, and the petitioner's attempts at mutual consultation satisfied the requirements of the contract.
The main legal point established in the judgment is the strict construction of arbitration clauses and the adherence to the terms of the arbitration agreement by the parties.
The Court emphasized the principle of 'when in doubt, do refer' and left the issues of limitation and compliance with the procedure for DRC under Clause 25 for consideration by the arbitrator.
The referral court under Section 11 of the Arbitration and Conciliation Act must determine the prima facie existence of an arbitration agreement and appoint an arbitrator if satisfied.
Compliance with procedural requirements under Section 11(5) of the Arbitration and Conciliation Act is essential for arbitration invocation.
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