IN THE HIGH COURT OF DELHI AT NEW DELHI
Jyoti Singh, J.
Neco Heavy Engineering And Castings Ltd. – Appellant
Versus
Union of India & Anr. – Respondents
O.M.P. (T) (COMM.) 41 of 2023 & I.A. 10133 of 2023
Decided On : 18-07-2023
Arbitration and Conciliation Act, 1996 - Termination of Arbitrator's Mandate - The court directed the arbitrator to pass the award expeditiously, considering the delay in rendering the award and the parties' agreement to proceed with the same arbitrator.
Fact of the Case:
Disputes arose between the parties regarding an agreement dated 18.06.1999. The sole arbitrator appointed in 2001 passed an award in favor of the Petitioner, which was challenged and remanded. The arbitrator reserved the award in 2012, but failed to render it despite repeated requests from the Petitioner.
Finding of the Court:
The court allowed the petition, directing the arbitrator to pass the award expeditiously, as both parties agreed that fresh appointment and de novo proceedings would further delay the matter.
Issues: Termination of the mandate of the arbitrator and the delay in rendering the award.
Ratio Decidendi: The court considered the delay in rendering the award and the parties' agreement to proceed with the same arbitrator, leading to the decision to direct the arbitrator to pass the award expeditiously.
Final Decision: The petition was allowed, and the arbitrator was directed to pass the award as expeditiously as possible, not later than four months from the date of the judgment.
JUDGMENT
Jyoti Singh, J. (Oral)--Present petition has been filed by the Petitioner under Section 14(1)(a) and 14(2) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as `the Act') seeking inter alia termination of the mandate of Sh. H.K. Jaggi, learned Sole Arbitrator appointed to adjudicate the disputes between the parties and in the alternative to direct the said Arbitrator to pass the award within one month, in the interest of justice.
2. The chronology of dates and events shows that disputes arose between the parties pertaining to an agreement dated 18.06.1999, executed between them. Disputes having arisen, Sh. H.K. Jaggi, Advisor (L&A), Railway Board was appointed as a Sole Arbitrator on 06.08.2001. On 09.10.2002, the learned Sole Arbitrator passed the award in favour of the Petitioner, which was challenged by the Respondents under Section 34 of the Act in O.M.P. No.46/2003. The petition was dismissed by this Court vide judgment dated 14.12.2005. The judgment was challenged by the Respondents in an appeal being FAO(OS) 602-603/2006. Vide judgment dated 06.08.2007, the Division Bench remanded the matter back to the Sole Arbitrator and thereafter parties were heard at length by the Arbitrator who concluded the hearing and reserved the award on 24.01.2012.
3. It is the case of the Petitioner that post the said date, several communications were addressed to the Sole Arbitrator requesting him to render the award but to no avail and this compelled the Petitioner to approach this Court seeking termination of the mandate of the Arbitrator.
4. On the last date of hearing, learned counsel appearing on behalf of the Respondents had sought instructions if Sh. H.K. Jaggi was willing to continue and pass the award. Today, Mr. Shukla has handed over a copy of letter dated 10.07.2023 addressed to the learned Arbitrator and the response thereto. From the letter of the Arbitrator dated 13.07.2023, it is evident that the learned Arbitrator has agreed to proceed in the matter and pass the award. Copies of the letters are taken on record.
5. Learned counsels for the parties submit, on instructions, that they have no objection to Sh. H.K. Jaggi proceeding further to pass the award as fresh appointment and de novo proceedings would only delay the matter further.
6. Accordingly, the petition is allowed directing the learned Arbitrator Sh. H.K. Jaggi to pass the award as expeditiously as possible and not later than four months from today, since the award was reserved way back in the year 2012.
7. Petition along with pending application is disposed of in the above terms.
The court has the authority to direct an arbitrator to pass the award expeditiously, considering the delay and the parties' agreement to proceed with the same arbitrator.
Delays in arbitration proceedings and failure to comply with the requirements of the Arbitration and Conciliation Act, 1996 can warrant the termination of an arbitrator's mandate.
The central legal point established is the enforcement of the dispute resolution mechanism and the appointment of a sole arbitrator as per the Contract Agreement and the Arbitration and Conciliation ....
The unilateral appointment of an arbitrator by one party, violating Section 12(5) of the Arbitration and Conciliation Act, 1996, renders the arbitrator ineligible, necessitating the appointment of a ....
The unilateral appointment of an Arbitrator contravenes statutory requirements, leading to termination of the mandate if the appointment raises doubts about independence or impartiality.
The de jure disqualification of an Arbitrator under A&C Act, 1996, Section 14(1) leads to the termination of the mandate and the appointment of a substitute Arbitrator.
The main legal point established in the judgment is that the application under section 11(6) of the Act, 1996 is not maintainable when the sole Arbitrator is appointed by mutual consent and in the ab....
Section 12(5) of the Arbitration and Conciliation Act mandates the termination of an arbitrator's mandate if applicable, ensuring appointment of a qualified substitute arbitrator for fairness in proc....
The unilateral appointment of an arbitrator by one party without consent of the other violates the Arbitration and Conciliation Act, resulting in automatic termination of the arbitrator's mandate.
The court may appoint a Sole Arbitrator when a party's prolonged failure to reconstitute the Arbitral Tribunal frustrates the arbitration process.
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