DELTA MECHCONS (INDIA) LTD. versus M/S MARUBENI CORPORATION

DELTA MECHCONS (INDIA) LTD. versus M/S MARUBENI CORPORATION

The procedure for appointment of presiding arbitrator agreed upon between the parties has broken down. The jurisdiction of the Chief Justice of India under Section 11 of the Arbitration and Conciliation Act, 1996 is rightly invoked for appointment of the presiding arbitrator, and the nationality restriction in the arbitration agreement must be respected.

Parties
Petitioner: DELTA MECHCONS (INDIA) LTD.; Respondent: MARUBENI CORPORATION
Jurisdiction
India
Judgment Date
18 May 2007
Procedural Posture
Arbitration Petition / Application Under Section 11 (6) of the Arbitration and Conciliation Act, 1996 for Appointment of Presiding Arbitrator
Outcome
Application allowed, jurisdiction under Section 11 invoked; parties directed to submit agreed or nominated names for presiding arbitrator.
Legal Topics
Appointment of Arbitrator, International Arbitration, Arbitral Tribunal Constitution
Arbitration Appointment of Arbitrator International Arbitration Arbitral Tribunal Constitution

Case Brief

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Parties

DELTA MECHCONS (INDIA) LTD.

Petitioner

MARUBENI CORPORATION

Respondent

Procedural Posture

Arbitration Petition / Application Under Section 11 (6) of the Arbitration and Conciliation Act, 1996 for Appointment of Presiding Arbitrator

Legal Issues

  1. 1 Whether the procedure for appointment of presiding arbitrator has broken down, justifying intervention under Section 11 of the Arbitration and Conciliation Act, 1996
  2. 2 Whether the nationality restriction for presiding arbitrator applies when the appointment is made by the Chief Justice of India

Ratio Decidendi

The procedure for appointment of presiding arbitrator agreed upon between the parties has broken down. The jurisdiction of the Chief Justice of India under Section 11 of the Arbitration and Conciliation Act, 1996 is rightly invoked for appointment of the presiding arbitrator, and the nationality restriction in the arbitration agreement must be respected.

Court Disposition

Application allowed, jurisdiction under Section 11 invoked; parties directed to submit agreed or nominated names for presiding arbitrator.

Orders

  • Parties to submit agreed name or two names each with consent for appointment as Chairman of arbitral tribunal.
  • Statements to be filed in writing by July 10, 2007; further orders on July 13, 2007.