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RAJASTHAN HIGH COURT
Vinit Kumar Mathur, J.
M/s N. S. Associates Pvt. Ltd - Appellant
Versus
Institute of Charted Accountants of India - Respondent
Arbitration Application No. 18 of 2019
Decided On : 02-12-2021
ARBITRATION - APPOINTMENT OF ARBITRATOR - The court examined the existence of an arbitration agreement as per Section 11 of the Arbitration and Conciliation Act, 1996, confirming that the arbitration clause was undisputed. The court appointed a sole arbitrator to resolve the dispute, emphasizing adherence to the statutory provisions and the agreed terms of arbitration.
Fact of the Case:
The applicant filed an application under Section 11 of the Arbitration and Conciliation Act, 1996 for the appointment of an arbitrator to resolve a dispute arising from a contract agreement dated 04/12/2013, which included an arbitration clause.
Finding of the Court:
The court found that the existence of the arbitration agreement was not in dispute and thus accepted the application for arbitration. It appointed Hon'ble Mr. Justice Manak Mohta as the sole arbitrator.
Issues: Whether the court should appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 given the existence of an arbitration agreement.
Ratio Decidendi: The court's decision was based on the clear existence of an arbitration clause in the contract, which mandated arbitration for disputes, and the provisions of Section 11 (6A) of the Arbitration and Conciliation Act, which limits the court's role to examining the existence of such an agreement.
Result: The application for the appointment of an arbitrator was allowed, and Hon'ble Mr. Justice Manak Mohta was appointed as the sole arbitrator to adjudicate the dispute.
JUDGMENT
Vinit Kumar Mathur, J. - The present application has been filed by the applicant under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of the Arbitrator to resolve the dispute which has arisen between the applicant and non-applicant/respondent.
2. The notices were issued by this Court and the same are served on the non-applicant/respondent.
3. Heard the learned counsel for the parties and perused the material available on record.
4. Reply has been filed.
5. The parties entered into a contract agreement on 04/12/2013 and as per the contract agreement, there is an arbitration clause enumerated in para 33.0, which reads as under :-
All disputes and differences of any kind whatsoever arising out of or in connection with the contract or carrying out the works whether during the progress of the work or after their completion and whether before or after the determination, abandonment of or breach of contract shall be referred for arbitration. Each party shall nominate one arbitrator and the two nominated arbitrators shall nominate an umpire. In case of difference between the two arbitrators, the matter shall be referred to the umpire for resolution. The seat of arbitration shall be at Bikaner. The award of the arbitrator shall be final and binding. The language of arbitration proceedings shall be English.
The provisions of Indian Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment thereof and all the rules made there under for the time being in force shall apply to the arbitration proceedings under this clause."
6. Learned counsel for the parties does not dispute the fact of an arbitration clause and the dispute which has arisen between the parties.
7. According to the provisions contained in Section 11 (6A) of the Arbitration and Conciliation Act, while considering any application under sub-section (4), (5) & (6), the Court is only required to examine the existence of an arbitration agreement. As the existence of arbitration agreement is not in dispute, the application filed by the applicant deserves to be accepted.
8. In the circumstances, the arbitration application is allowed. Hon?ble Mr. Justice Manak Mohta (Retired Justice of Rajasthan High Court) is appointed as a sole Arbitrator to adjudicate upon the dispute between the parties in terms of arbitration agreement and as per the Rajasthan Manual of Procedure for Alternative Dispute Resolution, 2009, as amended up to date and also as per the provisions of Arbitration and Conciliation Act.
9. The record of the case may be transmitted to the Hon?ble Mr. Justice Manak Mohta (Retd).
10. The above appointment is subject to the necessary disclosure under Section 12 of the Act.
11. Needles to say that the fee of the Arbitrator will be paid as per the Fourth Schedule of the Arbitration and Conciliation Act and the Arbitrator will consider all the jurisdictional objections while adjudicating the disputes between the parties.
12. The parties shall appear before the Arbitrator on or before 20/12/2021.
The court reaffirmed that the existence of an arbitration agreement is sufficient for the appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.
The main legal principle established in the judgment is the court's authority to appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 when a dispute arises and no arbi....
The court appointed an arbitrator as the parties consented to arbitration under the existing arbitration clause, complying with statutory requirements.
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.
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