RAMESHWAR DAS AGRAWAL AND ANR. versus KIRAN AGRAWAL AND ORS.

RAMESHWAR DAS AGRAWAL AND ANR. versus KIRAN AGRAWAL AND ORS.

The Chief Justice's order appointing an arbitrator without a reasoned order and without considering claims and objections of the parties is unsustainable as per SBP & Co. v. Patel Engineering Ltd and must be set aside; the matter is remitted to the High Court for fresh consideration.

Parties
Appellant: Rameshwar Das Agrawal; Respondent: Kiran Agrawal; Respondent: Respondents Nos. 2 to 6; Respondent: Respondent No. 7
Jurisdiction
India
Judgment Date
23 November 2007
Procedural Posture
Civil Appeal / Appeal From Order Under Section 11 of the Arbitration and Conciliation Act, 1996
Outcome
appeal allowed
Legal Topics
Appointment of Arbitrator Under Section 11, Judicial Vs Administrative Power Under Section 11, Requirement of Reasoned Order, Service of Notice and Hearing Objections
Arbitration Appointment of Arbitrator Under Section 11 Judicial Vs Administrative Power Under Section 11 Requirement of Reasoned Order Service of Notice and Hearing Objections

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Parties

Rameshwar Das Agrawal

Appellant

Kiran Agrawal

Respondent

Respondents Nos. 2 to 6

Respondent

Respondent No. 7

Respondent

Procedural Posture

Civil Appeal / Appeal From Order Under Section 11 of the Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether the order appointing an arbitrator under section 11 of the Arbitration and Conciliation Act, 1996 without a reasoned order and without considering claims and objections is sustainable.
  2. 2 Whether the Chief Justice or designated Judge acts in a judicial capacity under section 11 of the Act.

Ratio Decidendi

The Chief Justice's order appointing an arbitrator without a reasoned order and without considering claims and objections of the parties is unsustainable as per SBP & Co. v. Patel Engineering Ltd and must be set aside; the matter is remitted to the High Court for fresh consideration.

Court Disposition

appeal allowed

Orders

  • Impugned order dated 09.12.2005 appointing arbitrator is set aside.
  • Matter remitted to High Court for passing fresh order in accordance with SBP & Co. v. Patel Engineering Ltd and Anr.