EASTERN COALFIELDS LTD. versus SANJAY TRANSPORT AGENCY & ANR.

EASTERN COALFIELDS LTD. versus SANJAY TRANSPORT AGENCY & ANR.

Clause 14 of the agreement applies only to disputes between Public Sector Enterprises inter se and between Public Sector Enterprises and Government Departments, not to disputes involving private parties. Thus, the High Court's appointment of an arbitrator was improper.

Parties
Appellant: Eastern Coalfields Ltd.; Respondent: Sanjay Transport Agency; Respondent: Sanjay Transport Agency & Anr.
Jurisdiction
India
Judgment Date
06 May 2009
Procedural Posture
Civil Appeal / Appeal Against High Court Order Appointing Arbitrator Under S. 11(6) of Arbitration and Conciliation Act, 1996
Outcome
Appeal allowed; High Court order set aside.
Legal Topics
Arbitrator Appointment, Interpretation of Statutes, Limitation
Arbitration Contract Law Arbitrator Appointment Interpretation of Statutes Limitation

Case Brief

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Parties

Eastern Coalfields Ltd.

Appellant

Sanjay Transport Agency

Respondent

Sanjay Transport Agency & Anr.

Respondent

Procedural Posture

Civil Appeal / Appeal Against High Court Order Appointing Arbitrator Under S. 11(6) of Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether Clause 14 of the agreement allows appointment of arbitrator for disputes involving a private party.
  2. 2 Whether the High Court was correct in appointing an arbitrator under s. 11(6) of the Arbitration and Conciliation Act, 1996.

Ratio Decidendi

Clause 14 of the agreement applies only to disputes between Public Sector Enterprises inter se and between Public Sector Enterprises and Government Departments, not to disputes involving private parties. Thus, the High Court's appointment of an arbitrator was improper.

Court Disposition

Appeal allowed; High Court order set aside.

Orders

  • Order of the High Court appointing arbitrator is set aside.
  • Respondent is at liberty to approach civil court for adjudication of dispute.