DHARMA PRATHISHTHANAM versus M/S. MADHOK CONSTRUCTION PVT. LTD.

DHARMA PRATHISHTHANAM versus M/S. MADHOK CONSTRUCTION PVT. LTD.

A unilateral appointment of arbitrator and reference without mutual consent of parties or court intervention under the Arbitration Act, 1940 is wholly invalid. The award given by such arbitrator is void ab initio and a nullity, liable to be ignored regardless of limitation or participation, since the objection to jurisdiction was raised even if belatedly.

Parties
Appellant: Dharma Prathishthanam; Respondent: M/s. Madhok Construction Pvt. Ltd.
Jurisdiction
India
Judgment Date
02 November 2004
Procedural Posture
Civil Appeal / Supreme Court Appeal From Delhi High Court
Outcome
Appeal allowed
Legal Topics
Appointment of Arbitrator, Validity of Arbitration Award, Unilateral Reference to Arbitration, Limitation for Filing Objections
Arbitration Law Appointment of Arbitrator Validity of Arbitration Award Unilateral Reference to Arbitration Limitation for Filing Objections

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Parties

Dharma Prathishthanam

Appellant

M/s. Madhok Construction Pvt. Ltd.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal From Delhi High Court

Legal Issues

  1. 1 Whether a unilateral appointment of arbitrator and unilateral reference are valid in the absence of consent under Arbitration Act, 1940
  2. 2 Whether the award given by such arbitrator is void ab initio
  3. 3 Whether limitation for filing objections could be extended for delay in getting copy of award

Ratio Decidendi

A unilateral appointment of arbitrator and reference without mutual consent of parties or court intervention under the Arbitration Act, 1940 is wholly invalid. The award given by such arbitrator is void ab initio and a nullity, liable to be ignored regardless of limitation or participation, since the objection to jurisdiction was raised even if belatedly.

Court Disposition

Appeal allowed

Orders

  • Impugned award, appointment of arbitrator, and reference set aside as void ab initio and nullity
  • Respondent may pursue other remedies available under law, including condonation of delay for time lost in current proceedings