NDLI: Vinod Bhaiyalal Jain & Ors. Vs. Wadhwani Parmeshwari Cold Storage Pvt. Ltd.through Its Director & Anr.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	ss.34 37(1)(b) Arbitration and Conciliation Act 1996
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Arbitration and Conciliation Act, 1996 (26 of 1996)
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Arbitration and Conciliation Act, 1996 – ss.34, 37(1)(b) – Appellant utilized the services of respondent No.1 for keeping an agricultural product – According to appellants, the respondent no.1 caused damage to the product – Appellant issued notice for compensation, but in return respondent no.1 made a counter claim – Dispute arose between the parties – Respondent no.1 invoked the arbitration clause contained in the receipt of the storage of goods – Pursuant thereto, respondent no.1 referred the dispute to the Arbitrator ‘STM’, an advocate – Appointment of Arbitrator was objected on the ground that the said advocate was the counsel for respondent no.1 and its partners in other cases – However, Arbitrator proceeded with the matter and passed an award against the appellants – Aggrieved, appellant filed petition u/s.34 of the Act before the District Court – District Court found the objections justified and set aside the award – Respondent filed appeal u/s.37(1)(b) before the High Court – High Court restored the award passed by the Arbitrator – On appeal, held: The provision contained in s.12 of the Act, 1996 cast an obligation on the person, who is approached for appointment as an arbitrator, to disclose any circumstance likely to give rise to justifiable doubts as to his independence or impartiality – In the instant case, though technically as on 27.02.2004 when the storage receipt was drawn out and the Arbitration clause came into existence there was no circumstance for disclosure – However ‘STM’ had filed immediately thereafter, on 29.03.2004 vakalat for one of the parties (partner of respondent no.1) – Thus, as on 03.06.2006 when the claim was lodged before the Arbitrator both the events of, he being appointed as an Arbitrator and also as a counsel in another case had existed, which was well within the knowledge of ‘STM’ and in that circumstance it was theappropriate stage when he ought to have disclosed the same and refrained from entertaining the claim – In the background, there is a reasonable basis for the appellants to make a claim that in the present circumstance the Arbitrator would not be fair to them even if not biased – In that view, an award passed by the arbitrator was not sustainable – District Court was justified in entertaining petition u/s.34 of the Act, 1996 to set aside the award.
Judge	Hon'ble Mr. Justice Ajjikuttira Somaiah Bopanna
Neutral Citation	2019 INSC 800
Petitioner	Vinod Bhaiyalal Jain & Ors.
Respondent	Wadhwani Parmeshwari Cold Storage Pvt. Ltd.through Its Director & Anr.
SCR	[2019] 9 S.C.R. 1080
Judgement Date	2019-07-24
Case Number	6960

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Vinod Bhaiyalal Jain & Ors. Vs. Wadhwani Parmeshwari Cold Storage Pvt. Ltd.through Its Director & Anr.

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Vinod Bhaiyalal Jain & Ors. Vs. Wadhwani Parmeshwari Cold Storage Pvt. Ltd.through Its Director & Anr.

Vinod Bhaiyalal Jain & Ors. Vs. Wadhwani Parmeshwari Cold Storage Pvt. Ltd.through Its Director & Anr.

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Vinod Bhaiyalal Jain & Ors. Vs. Wadhwani Parmeshwari Cold Storage Pvt. Ltd.through Its Director & Anr.