Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Work contract Arbitration and Conciliation Act to appoint the arbitrator No Due Certificate in terms of the agreement s. 11(6) 1996 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Arbitration and Conciliation (amendment) Act, 2015 (3 of 2016) Arbitration and Conciliation Act, 1996 (26 of 1996) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 Referred Case 10 Referred Case 11 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Arbitration and Conciliation Act, 1996: s. 11(6) – Work contract – Dispute between the parties – In view of arbitration clause in the agreement, notice sent by respondent contractor to appellant to appoint an arbitrator invoking clause of the contract to resolve the dispute of payment of outstanding dues – Rejected by the appellants submitting that “No Due Certificate” was signed and that entails no dispute to be sent to arbitration – Subsequently, application u/s. 11(6) by the respondent before the High Court for appointment of independent arbitrator – High Court appointed a retired judge of the High Court as an independent Arbitrator – On appeal, held: Emphasis should be on the agreed terms and to first resort to the procedure as prescribed and open for the parties to the agreement to settle differences/disputes arising under the terms of the contract through appointment of a designated arbitrator – Independence and impartiality of the arbitrator has never been doubted but where it is in doubt or where the arbitral tribunal appointed in terms of the arbitration agreement has not functioned, or has failed to conclude the proceedings or to pass an award without assigning any reason, it becomes necessary to make a fresh appointment – On facts, notice sent by respondent much prior to enforcement of the Amendment Act, 2015, thus, the provisions of the Act of 2015 not applicable – High Court was not justified in appointing an independent arbitrator without resorting to the procedure for appointment of an arbitrator prescribed under the clause of the contract under the inbuilt mechanism as agreed by the parties – Orders passed by the High Court quashed and set aside – Appellants directed to appoint the arbitrator in terms of the agreement – Arbitration and Conciliation(Amendment Act), 2015. |
Judge | Hon'ble Mr. Justice Ajay Rastogi |
Neutral Citation | 2019 INSC 438 |
Petitioner | Union Of India |
Respondent | Parmar Construction Company |
SCR | [2019] 5 S.C.R. 1009 |
Judgement Date | 2019-03-29 |
Case Number | 3303 |
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