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DELHI HIGH COURT
C.HARI SHANKAR
ARSS Infrastructure Pvt. Ltd. – Appellant
Versus
Ircon International Ltd. – Respondent
| Table of Content |
|---|
| 1. contract stipulates arbitration process. (Para 1 , 3 , 4) |
| 2. arbitrator's appointment invalid under section 12(5). (Para 10 , 12) |
| 3. arbitration clauses may become unworkable. (Para 15 , 16 , 19) |
| 4. consequences of invalid arbitration clauses. (Para 20 , 21 , 22) |
| 5. court refers parties to arbitration. (Para 23 , 24 , 26 , 27 , 28) |
1. This Section 11 petition emanates out of a contract agreement dated 18th July, 2016 executed between NTPC Ltd. (Respondent 2 herein) and the petitioner, in which Respondent 1 IRCON International Ltd. (IRCON) acted as the agent/power of attorney holder of NTPC.
2. The details of the dispute are not relevant for the purposes of the present order, in view of the limited objections raised by the respondent, represented by Mr. Rituraj Biswas.
3. Clause 50.0 of the contract agreement provides for resolution of the disputes arising from the agreement by arbitration. Sub-clause 50.1 thereunder reads thus:
"50.1 This shall be governed by NTPC GCC subject to the provisions of Indian Arbitration and Conciliation Act, 1996 and it's up to date amendments."
4. The General Conditions of Contract (GCC) of the NTPC which, as per Cla
Arbitration clauses establishing party-designated arbitrators can become unworkable; disputes may still be arbitrable through court appointment of an arbitrator under statutory provisions.
The main legal point established in the judgment is the importance of party autonomy in arbitration, the enforceability of the entire arbitration clause, and the conditional acceptance of arbitration....
The Court's jurisdiction under Section 11(6) of the 1996 Act is limited to examining the existence and validity of an arbitration agreement, and the Court may reject claims that are manifestly non-ar....
The main legal point established in the judgment is that the appointment of an independent sole arbitrator is necessary, and the refusal of the petitioner to participate in conciliation proceedings d....
Point of Law : In terms of Section 11(6A) of the A&C Act, the scope of examination under Section 11 of the A&C Act is limited to the existence of the arbitration agreement
The Court emphasized the importance of examining the existence and validity of an arbitration agreement at the referral stage and the rejection of manifestly non-arbitrable claims.
A court can appoint an arbitrator when a party fails to do so despite repeated requests and after exhausting all pre-arbitration mechanisms.
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