Back
IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Patil Rail Infrastructure Pvt. Ltd. - Appellant
Versus
Ircon International Limited - Respondent
Arb.P. 422 of 2020
Decided On : 13-04-2021
| Table of Content |
|---|
| 1. arbitration clause in contract (Para 1 , 2) |
| 2. challenge to arbitration award (Para 3) |
| 3. petitioner's dispute initiation (Para 4 , 5 , 6) |
| 4. court's appointment of arbitrator (Para 7 , 8) |
| 5. arbitrator's fee and disclosure requirements (Para 9 , 10) |
| 6. dismissal of the petition (Para 11) |
(video-conferencing)
C. Hari Shankar. J.
ARB.P. 422/2020
1. By this petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 ("1996 Act"), the petitioner seeks appointment of an arbitrator to arbitrate on the dispute between the petitioner and the respondent.
2. The dispute arises out of a Supply Contract Agreement dated 14th May, 2012, which also contains General Conditions of Contract (GCC) and Special Conditions of Contract (SCC). Clause 36 of the General Conditions of Contract (GCC) provides for settlement of the disputes by arbitration, which read thus:
"36.0 SETTLEMENT OF DISPUTES
36.1 All disputes or differences of any kind whatsoever that may arise between the Employer/Engineer and the supplier in connection with or arising out of the contract or subject matter thereof or the execution of works, whether during the progress of works or after their completion, whether before or after determination of contract shall be settled as under:
36.2 Mutual Settlement
All such disputes or differences shall in the first place be referred by the supplier to the Employer in writing for resolving the same through mutual discussions, negotiations, deliberation etc. associating representatives from both the sides and concerted efforts shall be made for reaching amicable settlement of disputes or differences.
36.3 Conciliation/Arbitration
36.3.1 It is a term of this Contract that Conciliation/Arbitration of disputes shall not be commenced unless an attempt has first been made by the parties to settle such disputes through mutual settlement.
36.3.2 If the supplier is not satisfied with the settlement by the Employer on any matter in question, disputes or differences, the supplier may refer to the Managing Director of the Employer in writing to settle such disputes or differences through Conciliation or Arbitration provided that the demand for Conciliation or arbitration shall specify the matters, which are in question or subject of the disputes or differences as also the amount of claim, item wise. Only such dispute(s) or difference(s) in respect of which the demand has been made, together with counter claims of the employer shall be referred to Conciliator or Arbitrator as the case may be and other matters shall not be included in the reference.
36.3.3 Managing Director of the Employer may himself act as sole Conciliator/Sole Arbitrator or may at his option appoint another person as Sole Conciliator or Sole Arbitrator, as the case may be. In case, Managing Director of the Employer decides to appoint a Sole Conciliator/Sale Arbitrator, then a panel of at least three names will be sent to the supplier. Such persons may be working/retired employee of the Employer who had not been connected with the work. The supplier shall suggest minimum two names out of his panel for appointment of Sole Conciliator/Sole Arbitrator. Managing Director of the Employer will appoint Sale Conciliator/Sale Arbitrator out of the names agreed by the supplier.
36.3.4 In case the supplier opts for settlement of disputes through Conciliation at first stage and if the efforts to resolve all or any of the disputes through Conciliation fails' the supplier may refer to the Managing Director of the Employer for settlement of such disputes or differences through Arbitration. The appointment of sale arbitrator shall be done by the Managing Director of the Employer as per the procedure described above. No disputes or differences shall be referred to Arbitration after expiry of 60 days from the date of notification of failure of Conciliation.
36.3.5 The Conciliation and/or Arbitration proceedings shall be governed by the provisions of the India
Court can appoint an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 when disputes remain unresolved despite attempts at mutual settlement.
The court's authority to appoint an arbitrator in cases where the parties are unable to agree, in accordance with the law laid down by the Supreme Court and the provisions of the Arbitration & Concil....
Appointment of an arbitrator in instances where the respondent does not object to arbitration is valid under the Arbitration and Conciliation Act, emphasizing the importance of efficient dispute reso....
The court appointed an arbitrator to resolve disputes as per the arbitration clause in the agreement, emphasizing that the parties are bound to arbitrate their disagreements.
The court affirmed the enforceability of arbitration agreements and the necessity to refer disputes for arbitration according to the agreed terms.
The Court has the independent authority to appoint an arbitrator under Section 11 of the Arbitration Act regardless of the parties' proposed panel of arbitrators.
The court found the arbitration clause unenforceable as it contradicted statutory provisions, appointing a new arbitrator while affirming the binding nature of arbitration according to the provisions....
The court affirms the validity of the arbitration agreement and appoints an arbitrator as the parties consented to resolve disputes via arbitration.
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
