N.B.C.C. LTD. versus J.G. ENGINEERING PVT. LTD.

N.B.C.C. LTD. versus J.G. ENGINEERING PVT. LTD.

The mandate of the arbitrator was terminated due to failure to publish the award within the time mutually agreed by the parties. However, the High Court in appointing a substitute arbitrator failed to have due regard to Section 11(8) of the Act. Accordingly, the order appointing Mr. Justice Chittatosh Mookherji as sole arbitrator was set aside and the matter remitted to the High Court for appointment of arbitrator in compliance with Section 11(8) of the Arbitration and Conciliation Act.

Parties
Appellant: N.B.C.C. LTD.; Respondent: J.G. ENGINEERING PVT. LTD.
Jurisdiction
India
Judgment Date
05 January 2010
Procedural Posture
Civil Appeal / Appeal From Orders of Calcutta High Court Dated 23.3.2006 and 21.9.2007
Outcome
Appeal partly allowed; High Court's order appointing substitute arbitrator set aside; matter remitted to High Court for fresh decision.
Legal Topics
Termination of Mandate of Arbitrator, Arbitration Agreement, Appointment of Substitute Arbitrator, Section 14 and 15 Arbitration and Conciliation Act, Enlargement of Time for Award
Arbitration Termination of Mandate of Arbitrator Arbitration Agreement Appointment of Substitute Arbitrator Section 14 and 15 Arbitration and Conciliation Act Enlargement of Time for Award

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 3 Authorities cited 6 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

N.B.C.C. LTD.

Appellant

J.G. ENGINEERING PVT. LTD.

Respondent

Procedural Posture

Civil Appeal / Appeal From Orders of Calcutta High Court Dated 23.3.2006 and 21.9.2007

Legal Issues

  1. 1 Whether the mandate of the arbitrator was rightly terminated for failure to publish the award within the mutually agreed extended time.
  2. 2 Whether the High Court was correct in appointing a substitute arbitrator directly under Section 11(6) of the Act without addressing the requirements of Section 11(8).

Ratio Decidendi

The mandate of the arbitrator was terminated due to failure to publish the award within the time mutually agreed by the parties. However, the High Court in appointing a substitute arbitrator failed to have due regard to Section 11(8) of the Act. Accordingly, the order appointing Mr. Justice Chittatosh Mookherji as sole arbitrator was set aside and the matter remitted to the High Court for appointment of arbitrator in compliance with Section 11(8) of the Arbitration and Conciliation Act.

Court Disposition

Appeal partly allowed; High Court's order appointing substitute arbitrator set aside; matter remitted to High Court for fresh decision.

Orders

  • Application for appointment of substitute arbitrator under Section 11(6) to be decided afresh by High Court, taking into account Section 11(8) and Supreme Court precedent.