UNION OF INDIA vs PARMAR CONSTRUCTION COMPANY

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2019 Supreme(SC) 373

A.M.KHANWILKAR, AJAY RASTOGI
UNION OF INDIA – Appellant
Versus
PARMAR CONSTRUCTION COMPANY – Respondent

Advocates Appeared:
For the Appellant :Mr. K.M. Natarajan, ASG, Mr. Ashok K. Srivastava, Advocate, Mr. R. Balasubramanian, Advocate, Ms. Shradha Deshmukh, Advocate, Mr. Raj Bahadur, Advocate, Mr. Kisan Bhardwaz, Advocate, Mrs. Anil Katiyar, Advocate
For the Respondent:Mr. Sameer Jain, Advocate, Mr. Abhinav Shrivastava, Advocate, Mr. Suvigya Awasthy, Advocate, Mr. Karan Valecha, Advocate, Mr. Rahul Gupta, Advocate, Ms. Sana Kamra, Advocate, Mr. Vishwa Pal Singh, Advocate, Mr. Surjeet Singh, Advocate, Mr. Ronak, Advocate, Mr. Manendra Pal Gupta, Advocate, Mr. S. K. Bhattacharya, Advocate, Mr. L.K. Paonam, Advocate, Mrs. Tomthinnganbi Koijam, Advocate, Mr. Niraj Bobby Paonam, Advocate Mr. Nitin Kumar Thakur, Advocate, Miss Geetanjali Mohan, Advocate, Mr. E. C. Vidya Sagar, Advocate, and Mr. Subash Chandra Sagar, Advocate

Judgement Key Points

What is the effect of the Arbitration and Conciliation Amendment Act, 2015 on pending arbitral proceedings commenced under Section 21 of the Principal Act prior to 23 October 2015? What is the proper approach to appointment of an independent arbitrator when the arbitration clause and agreed appointment procedure (Clause 64) have not been complied with, including the role of the Chief Justice under Section 11(6) pre- and post-amendment? Whether signing a no-claims/discharge certificate and final bill payment bars or does not bar the reference of disputes to arbitration, considering accord and satisfaction and coercion/undue influence aspects?

Key Points: - (!) - (!) - (!) - (!) - (!) - (!)

What is the effect of the Arbitration and Conciliation Amendment Act, 2015 on pending arbitral proceedings commenced under Section 21 of the Principal Act prior to 23 October 2015?

What is the proper approach to appointment of an independent arbitrator when the arbitration clause and agreed appointment procedure (Clause 64) have not been complied with, including the role of the Chief Justice under Section 11(6) pre- and post-amendment?

Whether signing a no-claims/discharge certificate and final bill payment bars or does not bar the reference of disputes to arbitration, considering accord and satisfaction and coercion/undue influence aspects?

JUDGMENT

Rastogi, J.

Leave granted.

2. The question that arises for consideration in the batch of appeals by special leave is as to whether (1) the High Court was justified in invoking amended provision which has been introduced by Arbitration and Conciliation(Amendment Act), 2015 with effect from 23rd October, 2015(hereinafter being referred to as "Amendment Act, 2015"); (2) whether the arbitration agreement stands discharged on acceptance of the amount and signing no claim/discharge certificate and (3) whether it was permissible for the High Court under Section 11(6) of the Arbitration and Conciliation Act, 1996(prior to the Amendment Act, 2015) to appoint third party or an independent Arbitrator when the parties have mutually agreed for the procedure vis-à-vis the authority to appoint the designated arbitrator. The High Court has passed separate orders in exercise of its powers under Section 11(6) of the Act, 1996 in appointing an independent arbitrator without adhering to the mutually agreed procedure under the agreement executed between the parties. Since the batch of appeals

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2019 Supreme(SC) 373

A.M.KHANWILKAR, AJAY RASTOGIUNION OF INDIA – AppellantVersusPARMAR CONSTRUCTION COMPANY – Respondent

What is the effect of the Arbitration and Conciliation Amendment Act, 2015 on pending arbitral proceedings commenced under Section 21 of the Principal Act prior to 23 October 2015?

What is the proper approach to appointment of an independent arbitrator when the arbitration clause and agreed appointment procedure (Clause 64) have not been complied with, including the role of the Chief Justice under Section 11(6) pre- and post-amendment?

Whether signing a no-claims/discharge certificate and final bill payment bars or does not bar the reference of disputes to arbitration, considering accord and satisfaction and coercion/undue influence aspects?

Cases Referred (23)

A.M.KHANWILKAR, AJAY RASTOGI
UNION OF INDIA – Appellant
Versus
PARMAR CONSTRUCTION COMPANY – Respondent