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DELHI HIGH COURT
C.HARI SHANKAR
Samsung India Electronics Private Ltd. – Appellant
Versus
Comwen Information Technologies Pvt. Ltd. – Respondent
| Table of Content |
|---|
| 1. lack of respondent's appearance (Para 1 , 2) |
| 2. details of arbitration agreement (Para 4 , 5) |
| 3. invalid appointment of arbitrator under law (Para 6 , 7 , 8) |
| 4. referral to diac for appointment of arbitrator (Para 9 , 10) |
| 5. order for compliance and disposal of petition (Para 11 , 12) |
(Video-Conferencing)
1. There has been no appearance in this case on behalf of the respondent, despite service of notice.
2. It is seen that, even before the learned Arbitrator, the respondent has continuously been defaulting in appearance.
3. As such, I have heard Dr. Amit George, learned Counsel for the petitioner, and perused the documents.
4. This is a somewhat peculiar case in which the petitioner, having itself appointed the Arbitrator, a practicing Advocate of this Court, seeks substitution of the Arbitrator, citing Section 12(5) of the Arbitration and Conciliation Act, 1996 (" the 1996 Act", in short) read with the VII Schedule thereto and the judgments of the Supreme Court in Perkins Eastman Architects DPC v. HSCC (India) Ltd., 2019 SCC OnLine SC 1517, Bharat Broadband Network Ltd. v. United Telecoms Ltd., (2019) 5 SCC 755 and Haryana Space Application
An arbitrator cannot be unilaterally appointed in violation of Section 12(5) of the Arbitration and Conciliation Act, 1996; such an appointment is unsustainable.
The court has the authority to appoint a substituted Arbitrator when the initially appointed Arbitrator conveys inability to act due to a conflict of interest.
The court emphasized that the timeframe for appointing an arbitrator, as set in the agreement, is mandatory, and any deviation undermines the arbitration agreement's validity.
A party cannot appoint an arbitrator who has an interest in the dispute's outcome, ensuring impartiality in arbitration proceedings.
Court emphasized that arbitration must preserve progress and ensure equitable resolution of disputes as per contractual terms.
A party's right to appoint an arbitrator can be forfeited if they fail to do so within the agreed timeframe as per the arbitration agreement.
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