HINDUSTAN COPPER LTD. versus MONARCH GOLD MINING CO. LTD.

HINDUSTAN COPPER LTD. versus MONARCH GOLD MINING CO. LTD.

The process followed by Calcutta High Court, in which a Designate Judge determines existence of arbitration agreement and refers the matter for appointment of arbitrator to another Designate Judge or the Chief Justice, is not contemplated by Section 11 of the Arbitration and Conciliation Act, 1996 and is legally impermissible. Such applications must be adjudicated in entirety by either the Chief Justice or the Designate Judge.

Parties
Appellant: Hindustan Copper Ltd.; Respondent: Monarch Gold Mining Co. Ltd.
Jurisdiction
India
Judgment Date
11 October 2012
Procedural Posture
Civil Appeal / Appeal From Calcutta High Court Order Under Section 11 of Arbitration and Conciliation Act, 1996
Outcome
Appeals partly allowed
Legal Topics
Appointment of Arbitrator, Procedure Under Section 11 Arbitration and Conciliation Act, 1996
Arbitration Appointment of Arbitrator Procedure Under Section 11 Arbitration and Conciliation Act, 1996

Case Brief

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Parties

Hindustan Copper Ltd.

Appellant

Monarch Gold Mining Co. Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From Calcutta High Court Order Under Section 11 of Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether the procedure adopted by Calcutta High Court for consideration of applications under Section 11 of the Arbitration and Conciliation Act, 1996 is legally permissible
  2. 2 Whether piecemeal consideration of Section 11 application by Designate Judge and Chief Justice is allowed under law

Ratio Decidendi

The process followed by Calcutta High Court, in which a Designate Judge determines existence of arbitration agreement and refers the matter for appointment of arbitrator to another Designate Judge or the Chief Justice, is not contemplated by Section 11 of the Arbitration and Conciliation Act, 1996 and is legally impermissible. Such applications must be adjudicated in entirety by either the Chief Justice or the Designate Judge.

Court Disposition

Appeals partly allowed

Orders

  • Impugned orders set aside
  • Arbitration petitions restored to the file of the High Court for appropriate consideration