Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1996 – s.11(6) Arbitration and Conciliation Act |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Act(s) Referred | Bihar Public Works Contracts Arbitration Tribunal Act, 2008 (21 of 2008) Arbitration and Conciliation Act, 1996 (26 of 1996) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Arbitration and Conciliation Act, 1996 – s.11(6) – Bihar PublicWorks Contracts Arbitration Tribunal Act, 2008 – ss.8, 9 and 22 –Works Contract – Arbitration – State aggrieved by the appointmentof arbitrator u/s.11(6) of the Arbitration and Conciliation Act (theCentral Act) on the ground that the said Act is excluded by theBihar Public Works Contracts Arbitration Tribunal Act (the StateAct) – Held: The scheme of ss.8, 9 and 22 of the State Act showsthat in the absence of an agreement stipulating the applicability ofthe Central Act, the State Act applies to works contracts – Since, inthe instant case, an arbitration agreement exists and stipulatesapplicability of the Central Act, the State Act will not apply –However, it will be open to the appellant-State to move to the HighCourt for change of Arbitrator, if a case to this effect is made outon an objection of neutrality.Bihar Public Works Contracts Arbitration Tribunal Act, 2008– s.4(3)(b) – Constitutionality of – Held: s.4(3)(b), which providesthat the tenure of the Chairman and other members of the ArbitrationTribunal shall be at the pleasure of the Government, is inconsistentwith the constitutional scheme, particularly Art.14 of the Constitution– s.4(1) of the Act provides for a three year tenure or till the age of70 years whichever is earlier – Termination of the said tenure cannotbe at pleasure within the term stipulated as the arbitration tribunalhas quasi judicial functions to perform – Any termination of theservice of such member by a party to the dispute would interferedirectly with the impartiality and independence expected from suchmember – The said provision is, thus, manifestly arbitrary andcontrary to the Rule of Law – Accordingly, the said provisiondeclared unconstitutional – Constitution of India – Art.14 – WorksContract. |
Judge | N/A |
Neutral Citation | 2018 INSC 1223 |
Petitioner | The State Of Bihar & Ors. |
Respondent | M/s Brahmaputra Infrastructure Limited |
SCR | [2018] 6 S.C.R. 962 |
Judgement Date | 2018-03-22 |
Case Number | 3344 |
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