IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR
ALI MOHAMMAD MAGREY, MOHD. AKRAM CHOWDHARY, JJ.
Altaf Hussain Beg - Petitioner
Versus
Shakeel-ur-Rehman Bhat & Anr. - Respondents
WP (C) No. 1251 Of 2022, CM No. 3063 Of 2022, Caveat No. 899 Of 2022
Decided On : 28-06-2022
Arbitration - Appointment of Arbitrator - Arbitration and Conciliation Act, 1996 - Section 11(6)
Fact of the Case:
The Writ Petition challenges the interim orders passed by the Sole Arbitrator in an arbitration proceeding under Section 11(6) of the Arbitration and Conciliation Act, 1996. The Petitioner sought framing of draft issues, which was rejected by the Sole Arbitrator. The maintainability of the Writ Petition under Article 226 read with Article 227 of the Constitution was contested by the Respondent.
Finding of the Court:
The Court held that the interim orders challenged in the Writ Petition do not come within the purview of appealable orders under Section 37 of the Act. The Court emphasized the object of minimizing judicial intervention during arbitration and concluded that the Writ Petition is not maintainable.
Issues: The main issue was the maintainability of the Writ Petition under Article 226 read with Article 227 of the Constitution, considering the interim orders passed by the Sole Arbitrator.
Ratio Decidendi: The Court relied on the Constitutional Bench Judgment in 'SBP & C. v. Patel Engineering Ltd. & Anr., (2005) 8 Supreme Court Cases 618' to establish that the scheme of the Act does not permit correction of any order passed by the Arbitral Tribunal through Article 226 or 227 of the Constitution.
Final Decision: The Writ Petition was dismissed in limine as the Court found it not maintainable under the Act of 1996.
ORDER :
(Ali Mohammad Magrey, J.) :
1. This Writ Petition, purportedly, has its genesis in the Order dated 17th of September, 2021 passed by this Court in Arbitration Petition bearing No. 04/2021 filed by the Respondent No.1 herein under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short ‘the Act of 1996’) seeking appointment of an Arbitrator to resolve the disputes arising between the parties in connection with the Parent Partnership Deed dated 2nd of February, 2010 which contained an Arbitration Clause and the subsequent Partnership Deed dated 7th of June, 2014 providing therein that the disputes between the parties would be governed by the terms and conditions of the Parent Partnership Deed. The Court, in terms of the aforesaid Order, with the consent of the parties, appointed Hon’ble Mr Justice (Retd.) M. K. Hanjura, House No. 307, Lane No.4, Anand Vihar, Bohri, Talab Tillu, Jammu as the sole Arbitrator to make the award in accordance with the provisions of the Act. Pursuant to the aforesaid Order, the parties appeared before the Sole Arbitrator on 9th of October, 2021 and a mechanism/ procedure was devised with regard to the conduct of proceedings after hearing the parties. Thereafter, the proceedings were conducted by the Sole Arbitrator and, in terms of Order dated 15th of April, 2022, the matter was fixed for recording the statement of the Claimant/ Respondent No.1 herein. On 20th of April, 2022, the matter was again taken up on the face of a text message dated 16th of April, 2022 received by the Sole Arbitrator from the learned Counsel for the Respondent/ Petitioner herein via WhatsApp seeking framing of draft issues and the Sole Arbitrator, however, rejected the said WhatsApp message/communication by observing that the framing of issues is not an essential part of the mechanism and procedure to be expanded in an arbitration proceeding. Thereafter, an application was filed on behalf of the Respondent/ Petitioner herein seeking review of aforesaid orders dated 15th of April, 2022 and 20th of April, 2022. The Sole Arbitrator, in terms of Order dated 12th of May, 2022, rejected the application so filed by the Respondent/ Petitioner herein and fixed the matter for recording the statement of the Claimant/ Respondent No.1 herein. It is these Orders dated 15th of April, 2022; 20th of April, 2020; and 12th of May, 2022 passed by the Sole Arbitrator that have been put to challenge by the Respondent/Petitioner herein through the medium of the Petition in hand filed under Articles 226 and 227 of the Constitution.
2. When this matter was taken up for consideration, Mr M. A. Qayoom, the learned Counsel appearing on behalf of the Claimant/ Respondent No.1 herein, who is on Caveat, raised a preliminary objection with regard to the maintainability of the present Petition filed under Article 226 read with Article 227 of the Constitution. It is submitted that there is no scope for challenging the interim orders passed by the Sole Arbitrator inasmuch as the same are only a part of the proceedings with respect to conduct of the procedure being adopted in the process of arbitration and that the scheme of law does not provide for such a challenge. It is contended that the object of the Act of 1996 is that of minimizing judicial intervention and this important object is always required to be kept at the forefront as and when a Writ Petition is filed under Article 226/227 against the proceedings made under the Act of 1996. It is also argued by the learned Counsel that the impugned orders of the Sole Arbitrator, being interim in nature, are not appealable under Section 37 of the Act of 1996 and that the Petitioner/ the aggrieved party can project his grievance against the award or any in between order that might be passed by the Arbitrator only after the award is finally passed. While strengthening his argument, Mr Qayoom has referred to and relied upon the mandate of the Constitutional Bench Judgment passed by the Hon’ble S
Section 34 of the 1996 Act permits a challenge “against an arbitral award ... only by an application for setting aside such award”. “Arbitral award” is defined, in clause (c) of Section 2(1), as “inc....
Judicial intervention in arbitration is restricted; parties can only challenge interim orders in specific circumstances post-award under the Arbitration Act.
Interference in arbitration proceedings at any stage is impermissible due to the self-sufficiency of the Arbitration and Conciliation Act. Parties should avail the statutory remedy provided by the Ac....
Section 12 sets out grounds of challenge to person appointed as arbitrator and duty of an arbitrator appointed, to disclose any disqualification he may have.
Sub-section (3) of Section 9 provides for restriction of exercise of powers by the Court and it has to decide whether the remedy provided under section 17 is efficacious or not.
The Arbitral Tribunal has the power to rule on its own jurisdiction, including ruling on any objections with respect to the existence or validity of the arbitration agreement, and for that purpose, a....
The court established that challenges to an arbitrator's jurisdiction under Section 16 can only be raised after a final award, not as an interim appeal.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.