NARYAN PRASAD LOHIA versus NIKUNJ KUMAR LOHIA AND ORS.

NARYAN PRASAD LOHIA versus NIKUNJ KUMAR LOHIA AND ORS.

A party waives the right to challenge the composition of the arbitral tribunal if it fails to raise the objection in accordance with Section 16; Section 10 is a derogable provision and does not invalidate an award agreed to by the parties unless timely objection is made; the award cannot be set aside merely because it was passed by two arbitrators if no objection was raised within the prescribed time.

Parties
Appellant: Narayan Prasad Lohia; Respondent: Nikunj Kumar Lohia; Respondent: Sardul Singh Jain
Jurisdiction
India
Judgment Date
20 February 2002
Procedural Posture
Civil Appeal / Appeal Before Supreme Court After Appeal Dismissed by Division Bench of High Court
Outcome
Judgments of learned single Judge and the Division Bench on the question of law discussed are set aside.
Legal Topics
Waiver of Mandatory Statutory Requirements, Composition of Arbitral Tribunal, Challenge to Arbitral Award
Arbitration Waiver of Mandatory Statutory Requirements Composition of Arbitral Tribunal Challenge to Arbitral Award

Case Brief

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Parties

Narayan Prasad Lohia

Appellant

Nikunj Kumar Lohia

Respondent

Sardul Singh Jain

Respondent

Procedural Posture

Civil Appeal / Appeal Before Supreme Court After Appeal Dismissed by Division Bench of High Court

Legal Issues

  1. 1 Can a mandatory provision of the Arbitration and Conciliation Act, 1996, concerning the composition of the arbitral tribunal, be waived by the parties?
  2. 2 Whether the award passed by two arbitrators, contrary to Section 10, could be challenged when no objection was raised before the tribunal?

Ratio Decidendi

A party waives the right to challenge the composition of the arbitral tribunal if it fails to raise the objection in accordance with Section 16; Section 10 is a derogable provision and does not invalidate an award agreed to by the parties unless timely objection is made; the award cannot be set aside merely because it was passed by two arbitrators if no objection was raised within the prescribed time.

Court Disposition

Judgments of learned single Judge and the Division Bench on the question of law discussed are set aside.

Orders

  • Appeal placed before Bench of two Judges for consideration of other aspects stated to have been raised.
  • Appeals disposed of.