Appointment of Arbitrator: When no counter claim is preferred against averment in the petition, the said averment be taken as ‘correct’
Arbitration Petition No. 23 of 2015
Bench: CJI T. S. Thakur, Justice R. Banumathi, Justice Uday Umesh Lalit
Case Brief: The present matter is brought before this bench, is involving the issue of appointment of the Arbitrator within the provisions of the Arbitration and Conciliation Act, 1996. The petition is made under the provisions of sub- section (6) of section 11 of the said Act of 1996. In the facts which the petitioner- company brought before this bench, that the respondent- company was called upon for naming the Arbitrator by the letter communicated to it in the year 2015. Such appointment of the arbitrator was for the adjudication of the disputes which were seen arisen between Petitioner and Respondent companies. However, petitioner claimed that Respondent- company has failed to do the needful, leaving no alternative for the petitioner except the appointment of the arbitrator under the provisions of Sub- section (6) of the Section 11 of the said Act from this court. Thus, it is observed by this bench that the respondent has not appeared to contest the prayer for appointment of the arbitrator in the terms of the arbitration clause found in Engagement Letter of 2013. Moreover, it was also observed by this bench that if there is no counter claim from the respondent, the averments made in the petition should be taken to be ‘correct’ at least for the purpose of deciding the issue that ‘whether the matter ought to be referred to the Arbitrator. Moreover, the bench also seen that when such averments in the petition are also supported by the affidavit which is filed by the petitioner, then such averments will no doubt be considered as correct, as said herein above. As such, the bench after observing so, decided to consider the prayer, where it found no reasons to decline the same. Now the petitioner- company as prayed for the appointment of the Arbitrator, the bench decided to appoint a honourable former Judge of the Supreme Court of India as the Sole Arbitrator for adjudicating upon the disputes between the Petitioner and Respondent, companies. Moreover, the procedure is also clarified and also the so appointed arbitrator is also set free to determine his fee.
Read the Judgement: Purple Indi Holdings Ltd. Vs. Drilling &Offshore PTE. Ltd