A fresh reference to an Arbitral Tribunal is warranted when a prior arbitration award is set aside under Section 34 of the Arbitration and Conciliation Act, ensuring continuity in resolving contract-related disputes.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 34 - Appointment of an Arbitral Tribunal - The petitioner sought appointment of an Arbitral Tribunal regarding disputes arising from a contract agreement dated 05.09.2013, where previous award was set aside - The court observed that the parties were earlier referred to arbitration and an award was passed but set aside under Section 34, indicating a fit case for fresh reference. (Paras 1, 6)

(B) Arbitral Tribunal - The consent of the parties was taken to appoint Mr. Vinod Jain as the Arbitrator who shall entertain claims and counterclaims of the parties. The Arbitrator's fees are to be as per the Fourth Schedule of the Arbitration and Conciliation Act, 1996. (Paras 7, 8)

(C) Disclosure Requirements - The Arbitrator is mandated to furnish requisite disclosure under Section 12 within two weeks of reference. (Para 9)

Facts of the case:
The petitioner invoked arbitration due to disputes arising from a contract agreement, resulting in a previously rendered award being set aside. Despite requests for a reply by the respondent, there was a failure to file it within the stipulated time.

Findings of Court:
The court determined that it was appropriate to appoint a new Arbitrator and directed the previous procedure to be reinstated.

Issues: The main issue was whether to refer the matter to a new Arbitral Tribunal following the nullification of the previous award.

Ratio Decidendi: The court ruled that in cases where an award has been set aside, a fresh reference to an Arbitral Tribunal is warranted, emphasizing the necessity for arbitration in contractual disputes.

Result: Petition disposed of as stated.

Table of Content
1. petitioner seeks arbitration appointment. (Para 1)
2. disputes referred to arbitration, previous award set aside. (Para 2 , 3)
3. respondent's delay in submitting reply noted. (Para 4 , 5)
4. case merits fresh arbitration appointment. (Para 6)
5. arbitrator appointed and fees determined. (Para 7 , 8 , 9)
6. petition disposed of as ordered. (Para 10)

JUDGMENT

Sanjeev Sachdeva, J.

1. Petitioner seeks appointment of an Arbitral Tribunal pursuant to a Contract Agreement dated 05.09.2013.

2. Learned counsel for the petitioner submits that the disputes arising out of the said agreement were referred to an Arbitral Tribunal and the Arbitral Tribunal rendered an award dated 01.10.2018.

3. Learned counsel submits that the objections to the award were sustained and the award was set aside by order dated 06.10.2021. In those circumstances, fresh arbitration has been invoked and accordingly the disputes are required to be referred to an Arbitral Tribunal.

4. Learned counsel for the respondent prays for an adjournment. He submits that reply has been drafted and sent for signatures.

5. It is observed that the notice was issued on 10.02.2022 and thereafter on 14.03.2022respondent had appeared and sought time to file reply and the permission was granted and the reply was to be filed within three weeks. However, till date reply has not been filed.

6. Furthermore in view of the fact that the parties were earlier referred to arbitration and even an award was passed, though set aside under Section 34 of the Arbitration & Conciliation Act, 1996. It is a fit case where reference should once again be made to an Arbitral Tribunal.

7. In view of the above, with the consent of the parties, Mr. Vinod Jain, former District Judge, Punjab (Phone # 91 94681 78585) is appointed as the Arbitrator Tribunal. The Arbitral tribunal shall entertain the claims and counter claims, if any, of the parties.

8. The fees of the learned Arbitrator shall be as per the Fourth Schedule of the Arbitration and Conciliation Act, 1996.

9. The Arbitrator shall furnish the requisite disclosure under section 12 of the Arbitration and Conciliation Act, 1996 within two weeks of entering reference.

10. The petition is disposed of in the above terms.

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