Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration and Conciliation Act 1996 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 |
Case Type | Special Leave Petition |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | Arbitration and Conciliation Act, 1996 – s.11 and sub-section (5) of s.12 r/w. Seventh Schedule – Appointment of an Arbitrator – On 31.03.2015, the respondent and the petitioner-Sahkari Sangh entered into a distributorship agreement for distribution of milk and butter – Dispute arose between the parties – Clause 13 of the distribution agreement contained an arbitration clause, which provided that all disputes and differences arising out of or in any way touching or concerning the agreement, shall be referred to the sole Arbitrator, the Chairman of the petitioner Sangh – The respondent approached the sole Arbitrator-Chairman as per clause 13 of the agreement – During the pendency of the Arbitration proceedings, the respondent approached the High Court for appointment of an Arbitrator u/s.11 of the Act – The High Court appointed the former District and Sessions Judge to act as an arbitrator – Before the Supreme Court, the petitioner submitted that the High Court erred in appointing the arbitrator other than the arbitrator mentioned in clause 13 of the agreement – Held: Sub- section (5) of s.12 read with Seventh Schedule made it clear that if the arbitrator falls in any one of the categories specified in the Seventh Schedule, he becomes ‘ineligible’ to act as an arbitrator – Applying the law laid down by the Supreme Court in its various decisions and considering the object and purpose of insertion of sub-section (5) of s.12 r/w. Seventh Schedule to the Act, the Chairman of the petitioner Sangh can certainly be held ‘ineligible’ to continue as an arbitrator – Though in the Seventh Schedule the word ‘Chairman’ is specifically not mentioned but at the same time it would fall in the category of clause 1; clause 2; clause 5; clause 12 and hence would become ‘ineligible’ – Once the sole arbitrator-Chairman is ‘ineligible’ to act as an arbitrator, he loses mandate to continueas a sole arbitrator – Therefore, the High Court has not committed any error in appointing the arbitrator other than the sole arbitrator. |
Judge | Hon'ble Mr. Justice Aniruddha Bose Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2021 INSC 465 |
Petitioner | Jaipur Zila Dugdh Utpadak Sahkari Sangh Limited & Ors. |
Respondent | M/s Ajay Sales & Suppliers |
SCR | [2021] 7 S.C.R. 768 |
Judgement Date | 2021-09-09 |
Case Number | 13520 |
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