NDLI: Harbans Singh Tuli and Sons Builders Pvt. Ltd. Vs. Union of India

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Arbitration Act
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Arbitration Act, 1940 (10 of 1940)
Case Type	Special Leave Petition
Court	Supreme Court of India
Disposal Nature	Petition Dismissed
Headnote	Arbitration Act, 1940: Sections 5 and 20- Arbitrator -Appointment of-Contract containing clauses regarding appointment-Whether and when could be relied upon- Court appointing arbitrator- ln place of arbitrator appointed as per contract-Validity of.The respondent entrusted certain construction work to the petitioner, and the petitioner executed the contract. During the course of the contract, the petitioner was required to do some extra work for which a claim for payment was made and on that account, a dispute arose. Since clause 70 of the contract provided for arbitration, the petitioner asked for the appointment of arbitrator. Accordingly, an arbitrator was appointed. The petitioner protested against the appointment of the arbitrator and the proceedings dragged on. On his retirement from the Army, the appointment of the arbitrator came to an end. The same was the case with the two successive arbitrators appointed thereafter. Subsequently another arbitrator was appointed and he too relinquished the charge as the petitioner did not cooperate with him for more than 4 years. Thus, the matter was pending adjudication for about nine years, and a notice under Section 8 of the Arbitration Act was issued by the petitioner calling upon the Respondent to appoint an arbitrator. But no such appointment was made. Thereafter the petitioner filed an application before the trial court for appointment of an arbitrator by the Court. The respondent contested the suit on merits and also on the ground of lack of territorial jurisdiction. The trial court allowed the application and appointed an arbitrator; It also revoked the appointment of the arbitrator made by the respondent during the pendency of the application before the trial court. Aggrieved against the said order, the respondent approached the High Court by way of a Civil Revision. The High Court gave its finding that there was want of jurisdiction on the part of the trial court; and that Section 8(1) (b) of the Arbitration Act did not apply since there was no negligence or refusal by the respondent to appoint an arbitrator. Accordingly, the High Court set aside the order of the trial court appointing an arbitrator, who later made an ex-parte award without affording adequate opportunity to the respondent. Against the High Court's order, the petitioner preferred the present special leave petition. On behalf of the petitioner, it was contended that the appointment of the arbitrator made by the trial court should not have been interfered; that where a notice was issued by the petitioner ·calling upon the respondent to appoint an arbitrator, after the expiry of 15 days of that notice, the right to appoint arbitrator is forfeited; and since a part of the cause of action had arisen, within the territory as payment was made there by cheque, there was no lack of territorial jurisdiction. On behalf of the respondent, it was contended that Section 8 (1) (a) of the Arbitration Act had no application to a case in which the agreement provided for appointment of an arbitrator by one of the parties or by nominated persons; that where the parties have consented to a named person to be appointed as arbitrator; there was no application of Section 8 of the Act; and that merely because the arbitrator had hurried, that would not constitute failure of justice.
Judge	Hon'ble Dr. Justice T.K. Thommen
Neutral Citation	1992 INSC 41
Petitioner	Harbans Singh Tuli And Sons Builders Pvt. Ltd.
Respondent	Union Of India
SCR	[1992] 1 S.C.R. 602
Judgement Date	1992-02-11
Case Number	13530

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