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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Elekta Medical Systems Pvt. Ltd. - Appellant
Versus
Institute of Liver and Biliary Sciences - Respondent
O.M.P. (T) (COMM.) 18 of 2021 & I.A. 2055 of 2021 (Section 151 CPC)
Decided On : 09-08-2021
| Table of Content |
|---|
| 1. termination of arbitrator's mandate under section 12(5). (Para 1) |
| 2. consent on applicability of legal provisions. (Para 2 , 3) |
| 3. appointment of substitute arbitrator. (Para 4 , 5 , 6) |
| 4. disposition of petition and application. (Para 7) |
(Video-Conferencing)
C. Hari Shankar, J.
O.M.P. (T) (COMM.) 18/2021
1. The petitioners, by this petition, seek termination of the mandate of the arbitrator, presently in seisin of the disputes between the parties in view of Section 12(5) of the Arbitration and Conciliation Act, 1996 ("the 1996 Act") read with the judgments of the Supreme Court in Bharat Broadband Network Ltd. v. United Telecoms Ltd., (2019) 5 SCC 755, Perkins Eastman Architects DPC v. HSCC (India) Ltd., 2019 SCC Online SC 1517 and Haryana Space Application Centre v. Pan India Consultants Pvt. Ltd., (2021) 3 SCC 103.
2. Mr. Sanjay Poddar, learned Senior Counsel for the respondent, fairly concedes to the applicability of Section 12(5) of the 1996 Act as well as the aforesaid decisions and, therefore, submits that this Court may appoint an arbitrator in place of the arbitrator presently in seisin of the disputes.
3. As such, without meaning any disrespect to the learned Arbitrator presently seized with the disputes between the parties - who is a learned retired Judge of this Court - and solely because of the applicability of the aforesaid decisions of the Supreme Court read with Section 12(5) of the 1996 Act, this Court is constrained to terminate the appointment of the said learned Arbitrator.
4. In his place, this Court requests Hon'ble Ms. Justice Gita Mittal, former Chief Justice of the High Court of Jammu and Kashmir, who has also been Acting Chief Justice of this Court, and whose name is acceptable to learned Counsel for both sides, to take over as substitute arbitrator to arbitrate on the disputes between the parties. The learned Arbitrator would continue the proceedings from the stage at which they stand presently.
5. The learned Arbitrator is also requested to furnish the requisite disclosure under Section 12(2) of the 1996 Act within a week of entering on reference.
6. The learned Arbitrator would be entitled to fees as were being paid to the earlier arbitrator, who was in seisin of the disputes.
7. The petition stands disposed of in the aforesaid terms.
I.A. 2055/2021 (Section 151 CPC)
In view of the order passed in the petition, this application stands disposed of.
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....
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.
Neutrality of the arbitrator is essential; a substitute arbitrator can be appointed by mutual consent to maintain fairness in arbitration proceedings.
Section 11 of the Arbitration and Conciliation Act, 1996 does not provide for the substitution or termination of the mandate of an arbitrator, and cannot be invoked to substitute an arbitrator appoin....
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.
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.
The court emphasizes that failure to comply with the arbitration clause entitles the petitioner to seek judicial appointment of an arbitrator.
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