M/S. ZHEJIANG BONLY ELEVATOR GUIDE RAIL MANUFACTURE CO. LTD. versus M/S. JADE ELEVATOR COMPONENTS

M/S. ZHEJIANG BONLY ELEVATOR GUIDE RAIL MANUFACTURE CO. LTD. versus M/S. JADE ELEVATOR COMPONENTS

Where a dispute resolution clause provides for resolution through arbitration or court in case consultation fails, invocation of the arbitration option by a party suffices for the Court to appoint an arbitrator under Section 11(5) of the Arbitration & Conciliation Act, 1996.

Parties
Petitioner: M/S. ZHEJIANG BONLY ELEVATOR GUIDE RAIL MANUFACTURE CO. LTD.; Respondent: M/S. JADE ELEVATOR COMPONENTS
Jurisdiction
India
Judgment Date
14 September 2018
Procedural Posture
Arbitration Petition (civil) No. 22 of 2018 / Supreme Court Original Jurisdiction, Section 11(5) Arbitration & Conciliation Act, 1996
Outcome
Petition allowed.
Legal Topics
Appointment of Arbitrator, Interpretation of Arbitration Clause
Arbitration Law Appointment of Arbitrator Interpretation of Arbitration Clause

Case Brief

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Parties

M/S. ZHEJIANG BONLY ELEVATOR GUIDE RAIL MANUFACTURE CO. LTD.

Petitioner

M/S. JADE ELEVATOR COMPONENTS

Respondent

Procedural Posture

Arbitration Petition (civil) No. 22 of 2018 / Supreme Court Original Jurisdiction, Section 11(5) Arbitration & Conciliation Act, 1996

Legal Issues

  1. 1 Whether Clause 15 of the Commission Processing Contract constitutes a valid arbitration clause entitling the petitioner to appointment of a sole arbitrator under Section 11(5) of the Arbitration and Conciliation Act, 1996.

Ratio Decidendi

Where a dispute resolution clause provides for resolution through arbitration or court in case consultation fails, invocation of the arbitration option by a party suffices for the Court to appoint an arbitrator under Section 11(5) of the Arbitration & Conciliation Act, 1996.

Court Disposition

Petition allowed.

Orders

  • Justice Prakash Prabhakar Naolekar, formerly a Judge of Supreme Court, appointed as sole arbitrator to arbitrate upon disputes between the parties.
  • Arbitrator to be guided by Arbitration & Conciliation (Amendment) Act, 2015.