M/S. S.B.P. AND CO. versus M/S. PATEL ENGINEERING LTD. AND ANR.

M/S. S.B.P. AND CO. versus M/S. PATEL ENGINEERING LTD. AND ANR.

Per majority, the functions performed by the Chief Justice under Section 11 of the Arbitration and Conciliation Act, 1996 are judicial in nature; the Chief Justice must act judicially when deciding conditions for appointment of an arbitrator, and the arbitral tribunal cannot go behind that decision on its own jurisdiction. Per minority, the function is administrative, with a duty to act fairly but not judicially.

Parties
Appellant: S.B.P. AND CO.; Respondent: PATEL ENGINEERING LTD.; Respondent: ANR.
Jurisdiction
India
Judgment Date
26 October 2005
Procedural Posture
Appeals / Final Judgment
Outcome
appeals disposed
Legal Topics
Functions of Chief Justice Under Section 11 of Arbitration and Conciliation Act, Judicial Vs Administrative Powers, Kompetenz Kompetenz, Doctrine of Fairness, Challenge and Review of Arbitral Tribunal Orders
Arbitration Functions of Chief Justice Under Section 11 of Arbitration and Conciliation Act Judicial Vs Administrative Powers Kompetenz Kompetenz Doctrine of Fairness Challenge and Review of Arbitral Tribunal Orders

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 13 Party arguments 2
Sign in to unlock

Parties

S.B.P. AND CO.

Appellant

PATEL ENGINEERING LTD.

Respondent

ANR.

Respondent

Procedural Posture

Appeals / Final Judgment

Legal Issues

  1. 1 Whether the functions performed by the Chief Justice under Section 11 of the Arbitration and Conciliation Act, 1996 are administrative or judicial
  2. 2 Whether the arbitral tribunal can go behind the decision of the Chief Justice on its own jurisdiction
  3. 3 Whether orders passed under Section 11 can be challenged under Articles 226 and 227 of the Constitution

Ratio Decidendi

Per majority, the functions performed by the Chief Justice under Section 11 of the Arbitration and Conciliation Act, 1996 are judicial in nature; the Chief Justice must act judicially when deciding conditions for appointment of an arbitrator, and the arbitral tribunal cannot go behind that decision on its own jurisdiction. Per minority, the function is administrative, with a duty to act fairly but not judicially.

Court Disposition

appeals disposed

Orders

  • Chief Justice must issue notice to affected parties before appointment of arbitrator under Section 11.
  • Appointments made prior without notice are held legal and valid; prospective application of notice requirement.