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NAVIN CHAWLA
Vindhya Vasini Construction Co. – Appellant
Versus
Bharat Heavy Electricals Ltd. – Respondent
JUDGMENT
Navin Chawla, J. (Oral)--This petition has been filed under Section 11(6) of the Arbitration and Conciliation, 1996 (hereinafter referred to as the `Act.) seeking appointment of an Arbitrator for adjudicating the disputes that have arisen between the parties in relation to the Work Order dated 10.03.2016 for receipt of equipment/material at site, unloading, inspection, verification, storage, up keeping during storage, erection, testing, commissioning and handing over of 400/220KV substation at Unchahar in Uttar Pradesh, placed by the respondent on the petitioner.
2. The Arbitration Agreement between the parties is contained in Clause 23 of the Work Order, which is reproduced hereinbelow:
"23.0 ARBITRATION:
23.1 Except where otherwise provided for in the contract all questions & disputes relating to the meaning of the specification designs drawings and instruction herein before mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claim, right, matter or thing whatsoever in any way arising out of or relating to the contract, designs, drawings specifications, estimates, instructions, orders of these conditions or otherwise co
The court emphasized the necessity for impartiality in arbitration, ruling that automatic appointments of arbitrators undermined the arbitration clause, rendering the award invalid.
Appointment of arbitrator by designation is permissible. Arbitration clauses in government contracts providing that an employee of the department will be the sole arbitrator are neither void nor unen....
The court can appoint an independent arbitrator when the designated arbitrator has a conflict of interest, emphasizing the need for impartiality in arbitration proceedings.
The main legal point established in the judgment is that the appointment of an arbitrator must be in accordance with the law, and if found to be invalid, the court has the jurisdiction to set it asid....
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