NANDYAL CO-OP. SPINNING MILLS LTD .. versus K.V. MOHAN RAO

NANDYAL CO-OP. SPINNING MILLS LTD .. versus K.V. MOHAN RAO

Court held that as the Administrative Head of appellant failed to appoint an Arbitrator within contractual 15 days after respondent's request, Court had jurisdiction under Section 8(1)(a) of Arbitration Act, 1940 to appoint an Arbitrator. The covenant did not waive bias against persons nominated after expiry and does not prevent Court appointment. Appointment by trial court upheld as valid.

Parties
Appellant: Nandyal Co-operative Spinning Mills Ltd.; Respondent: K.V. Mohan Rao
Jurisdiction
India
Judgment Date
05 March 1993
Procedural Posture
Civil Appeal / Appeal From Andhra Pradesh High Court Judgment and Order Dated 12.10.92 in C.r.p. No.1381 of 1991
Outcome
Appeal dismissed
Legal Topics
Appointment of Arbitrator, Bias in Arbitration, Waiver of Bias, Court Appointed Arbitrator Under Arbitration Act, 1940 Section 8
Arbitration Appointment of Arbitrator Bias in Arbitration Waiver of Bias Court Appointed Arbitrator Under Arbitration Act, 1940 Section 8

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Parties

Nandyal Co-operative Spinning Mills Ltd.

Appellant

K.V. Mohan Rao

Respondent

Procedural Posture

Civil Appeal / Appeal From Andhra Pradesh High Court Judgment and Order Dated 12.10.92 in C.r.p. No.1381 of 1991

Legal Issues

  1. 1 Whether the respondent waived bias by covenant in arbitration agreement
  2. 2 Whether Civil Court has jurisdiction to appoint an Arbitrator under Section 8 of Arbitration Act, 1940 when party fails to appoint Arbitrator within stipulated time

Ratio Decidendi

Court held that as the Administrative Head of appellant failed to appoint an Arbitrator within contractual 15 days after respondent's request, Court had jurisdiction under Section 8(1)(a) of Arbitration Act, 1940 to appoint an Arbitrator. The covenant did not waive bias against persons nominated after expiry and does not prevent Court appointment. Appointment by trial court upheld as valid.

Court Disposition

Appeal dismissed

Orders

  • Appointment of arbitrator by trial court as upheld by High Court affirmed
  • No interference with High Court's order