AI Overview...
-
Inherent Lack of Power in Arbitrator Appointment - Several sources emphasize that an appointment made without proper jurisdiction or authority is inherently invalid, rendering the arbitral award a nullity. For instance, if an arbitrator is appointed contrary to the arbitration agreement or without proper authority (e.g., not being a gazetted officer or lacking jurisdiction), the award can be set aside. This is highlighted in Union of India VS Builders Corporation Pvt. Ltd. - Calcutta, Union of India VS Ajit Mehta & Associates & others - Bombay, and Neeraj Kumarpal Shah VS Manbhupinder Singh Barinder Singh Atwal - Gujarat.
-
Jurisdiction and Power Challenges - Challenges based on jurisdictional defects are recognized as being of an inherent nature, meaning they can be raised at any stage of proceedings. The courts have held that such defects, when intrinsic, invalidate the proceedings regardless of waiver or participation, as discussed in Union of India VS Ajit Mehta & Associates & others - Bombay and Union of India VS Builders Corporation Pvt. Ltd. - Calcutta.
-
Role of Section 11(6) and Authority to Appoint Arbitrators - The power to appoint arbitrators under Section 11(6) is a judicial function, exercised by the Chief Justice or designated authority, not an administrative act. The designation of officers (e.g., district judges or other officials) as arbitral appointment authorities must conform to the scheme of the Act; improper designation (e.g., by a designation not warranted under the Act) can be challenged for lack of inherent power, as explained in G. VIJNYANAGHAVAN VS M. D. CENTRAL WAREHOUSING CORPORALK - Delhi, Neeraj Kumarpal Shah VS Manbhupinder Singh Barinder Singh Atwal - Gujarat, and Indian Potash Limited VS Bohra Industries Ltd. - Rajasthan.
-
Waiver and Participation Do Not Cure Inherent Defects - If an appointment is fundamentally flawed due to lack of jurisdiction or power, participation in proceedings does not constitute waiver. Courts have held that such inherent defects can be challenged at any time, and participation does not bar subsequent challenges, as seen in Aqua Labour Asia Pacific Limited vs Arihant Ship Breaters - Bombay and Amit Singla VS H. P. Agro Industries Corporation Ltd. - Himachal Pradesh.
-
Implications of Designation and Appointment Procedures - Proper exercise of appointment powers requires adherence to statutory provisions. Unauthorized or improper designation of authorities (e.g., a district judge not authorized under the Act) invalidates the appointment, and consequently, the arbitral process, as discussed in G. VIJNYANAGHAVAN VS M. D. CENTRAL WAREHOUSING CORPORALK - Delhi and Neeraj Kumarpal Shah VS Manbhupinder Singh Barinder Singh Atwal - Gujarat.
Analysis and Conclusion
The overarching principle is that the designation or appointment of an arbitrator must be made within the powers conferred by the arbitration agreement and the Arbitration and Conciliation Act, 1996. Any appointment made without proper jurisdiction or authority is inherently defective, rendering the award null and void. Such defects are not curable by waiver or participation and can be challenged at any stage. Courts recognize that the power to appoint arbitrators under Section 11(6) is a judicial function requiring strict adherence to statutory procedures. If this process is flawed—such as improper designation or appointment without jurisdiction—the resulting arbitral award can be set aside for lack of inherent power in the appointment process.
Search Results for "Designation of Arbitrator Not Inherent Lack of Power"
2009 0 Supreme(Cal) 622 • India - Calcutta
S.S.NIJJAR, BISWANATH SOMADDER
The appointment of the Arbitrator was not in accordance with the arbitration agreement. ... ARBITRATION - JURISDICTION - QUORUM NON JURIS - SOLE ARBITRATOR NOT A GAZETTED RAILWAY OFFICER - AWARD SET ASIDE. ... The objection with regard to the lack of jurisdiction had been taken before the Arbitrator. 2. ... ... (XI) For that this being essential a case of quorum-non-juris the purported award is a nullity for want of inherent lack of jurisdiction." .....
2016 0 Supreme(Bom) 558 • India - Bombay
R.D.DHANUKA
Section 11(6) of the Act since one of the parties to the proceedings was incorporated in a country other than India and there was an inherent ... The power under Section 11(6) of the Act is not an administrative power but a judicial power. 3. ... Finding of the Court: The High Court held that: * The power to appoint an arbitrator under Section 11(6) of the Act ... There was no inherent lack of jurisdiction on the part of the lear....
2000 0 Supreme(Del) 578 • India - Delhi
MUKUL MUDGAL
Arbitration and Conciliation Act 1996 - Section 12 — Challenge to appointment of arbitrator — Allegation of partiality and bias — ... Merely because a person was on the panel of arbitrators of the party is not ipso facto sufficient to impugned the impartiality and ... named officer by designation who was appointed in terms thereof and had entered upon the duties immediately. ... In, the doited lines contract it was held that the consensus-ad-idem was absent and the element of bias would be inherent from....
1989 0 Supreme(Bom) 206 • India - Bombay
P.B.SAWANT, M.L.DUDHAT
This is not a matter of mere illegality in the appointment of the arbitrator but a lack of power to appoint the arbitrators in question ... The third proposition is that when the award suffers from such inherent defect it can be set aside or ignored at any stage of the ... The Court which made the appointment had no power under Section 8 to appoint the arbitrator and hence no arbitrator could have been ... In each of these agreement....
2006 0 Supreme(Del) 67 • India - Delhi
sit in appeal over the award of arbitrator to re-examine the evidence - Objection regarding appointment of arbitrator not raised ... from challenging the authority of arbitrator in appeal against the award. ... before the arbitrator himself and objector continued to participate in the arbitration proceeding - Held that the objector is precluded ... Corporation of Calcutta, AIR 1973 Calcutta 434 in which case the appointment of the Arbitrator was by designation. ... Le....
2024 Supreme(Online)(Bom) 8095 • India - IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ABHAY AHUJA
The respondent contended the appointment of the arbitrator was invalid due to lack of jurisdiction. ... jurisdiction is a nullity and can be challenged anytime - Waiver of the right to challenge jurisdiction cannot apply where the defect is inherent ... objection regarding jurisdiction does not invalidate the proceedings. ... not have appointed an arbitrator and the question of waiver would not apply to a case of inherent lack of ju....
2019 0 Supreme(Raj) 718 • India - Rajasthan
PRATAP KRISHNA LOHRA
Centre Rules - sole arbitrator also charged his fee as per Delhi Rules - Upon conclusion of proceedings sole arbitrator passed award ... - This Court vide judgment/order disposed of non-petitioners application reads as under fee of learned arbitrator shall be paid ... - Likewise non-petitioner/applicant too made endeavour to agitate its cause before this Court for referring dispute to arbitrator ... (v) Designation of a district judge as the authority under Section 11(6) of the Act by the Chief Justice....
• India - Delhi High Court
NEENA BANSAL KRISHNA
(Paras 1-34) ... ... (B) The review power is not inherent in High Courts under the Arbitration ... Arbitration & Conciliation Act, 1996 - Section 11 - Review Petition under Order XLVII Rule 1 of CPC - Petition dismissed on grounds of lack ... , 1871(3) SCC 847, the scope of review in general has been defined and it is stated that the power of review is not an inherent power. ... It observed thus: "It will thus be seen that wherever there is an ex....
2010 0 Supreme(HP) 887 • India - Himachal Pradesh
R.B.MISRA
- Recalling the order is in the interest of justice - Order recalled and case will be considered afresh for appointment of the arbitrator ... Arbitration and Conciliation Act, 1996 -Section - 11 - Powers of Chief Justice - Recall of the order - Power is judicial and not ... Grounds for - That the Corpn. was not represented on the relevant day as such not heard. ... for the ends of justice and held that it is not possible to hold that the provisions of the Code control the inh....
2020 0 Supreme(Guj) 348 • India - Gujarat
A.Y.KOGJE
Judgment of Apex Court in case of where in facts arbitral tribunal terminated proceedings on ground that claimant was not ... (iii) In case of designation of a judge of the High Court or of the Supreme Court, the power that is exercised by the designated, judge would be that of the Chief Justice as conferred by the statute. ... (v) Designation of a district judge as the authority under Section 11(6) of the Act by the Chief Justice of the High Court is not warranted on the scheme of the Act. ... Oil an....
Filter by Legal Phrase
