C.M.C. LTD. versus UNIT TRUST OF INDIA & ORS.

C.M.C. LTD. versus UNIT TRUST OF INDIA & ORS.

The arbitration agreement between the parties did not cede the power of appointment of arbitrators to the Indian Council of Arbitration. The parties retained the right to appoint their own arbitrators, who would appoint a presiding arbitrator. Incorporation of the Council's Rules was only for the conduct of proceedings, not for appointment. Therefore, there was no failure to follow procedure, and the designated Judge's interpretation and constitution of Arbitral Tribunal was correct.

Parties
Appellant: C.M.C. LTD.; Respondent No.1: UNIT TRUST OF INDIA
Jurisdiction
India
Judgment Date
01 March 2007
Procedural Posture
Civil Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
Appointment of Arbitrator, Interpretation of Arbitration Agreement, Incorporation of Arbitration Rules
Arbitration Appointment of Arbitrator Interpretation of Arbitration Agreement Incorporation of Arbitration Rules

Case Brief

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Parties

C.M.C. LTD.

Appellant

UNIT TRUST OF INDIA

Respondent No.1

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether the arbitration agreement obligated parties to appoint arbitrators as per the Rules of Indian Council of Arbitration
  2. 2 Whether the designated Judge correctly interpreted the arbitration agreement regarding appointment of arbitrators

Ratio Decidendi

The arbitration agreement between the parties did not cede the power of appointment of arbitrators to the Indian Council of Arbitration. The parties retained the right to appoint their own arbitrators, who would appoint a presiding arbitrator. Incorporation of the Council's Rules was only for the conduct of proceedings, not for appointment. Therefore, there was no failure to follow procedure, and the designated Judge's interpretation and constitution of Arbitral Tribunal was correct.

Court Disposition

Appeal dismissed

Orders

  • Order of designated Judge affirmed
  • Arbitral Tribunal to enter upon the reference without any further delay and pronounce its award within nine months of entering upon reference