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NEENA BANSAL KRISHNA
Union of India – Appellant
Versus
Pushkar Paint Industries – Respondent
JUDGMENT
Neena Bansal Krishna, J.
1. The present petition under Section 14 of the Arbitration & Conciliation (Amended) Act, 2015 has been filed for termination of mandate of the Arbitral Tribunal.
2. The petitioner herein (who is the respondent in the arbitration proceedings) is the Ordnance Department (Indian Army) under the Ministry of Defence, Government of India. A Supply Order dated 30.05.2014 for procurement of Paint Qty. 42,180 amounting to Rs.1,06,19,923.49 was placed upon respondent No.1. However, respondent No.1 failed to submit the advance sample within time in terms of the Contract, leading to huge losses to the petitioner which was compelled to cancel the Supply Order. The Bank Guarantee of Rs.10,61,992/- submitted by respondent No.1, was forfeited. The Respondent No.1 challenged the forfeiture by way of Writ Petition before the High Court of Allahabad. However, vide Order dated 11.05.2017 the Writ Petition was dismissed with a liberty to the parties to invoke arbitration proceedings in terms of Arbitration Clause 3 contained in the Agreement between the parties.
3. The petitioner was supposed to choose the name of Arbitrator from the Panel of Arbitrators to work as
Arbitrators must be impartial and capable of performing their duties; prolonged inaction in arbitration proceedings justifies termination of their mandate.
The main legal point established in the judgment is that the grounds for termination of an arbitrator's mandate must satisfy the circumstances laid down under the Act and the precedents set by the Ho....
An arbitrator's mandate can be terminated when they fail to act without undue delay; new appointments must ensure impartiality as per updated legal standards.
Arbitrators cannot unilaterally enhance fees without party consent, reaffirming the principle of party autonomy in arbitration agreements.
Arbitration fees must adhere strictly to the terms of the Arbitration Agreement, and unilateral alterations by the Tribunal are impermissible.
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