SP SINGLA CONSTRUCTIONS PVT. LTD. versus STATE OF HIMACHAL PRADESH AND ANOTHER

SP SINGLA CONSTRUCTIONS PVT. LTD. versus STATE OF HIMACHAL PRADESH AND ANOTHER

Appointment of the arbitrator by designation as per clause (65) of the contract was valid. The provisions of Section 12(5) of the Amendment Act, 2015 do not apply as proceedings commenced before the amendment. Challenge to appointment must be raised before the arbitrator first. Termination of arbitral proceedings...

Source-derived case information.

Parties
Appellant: SP Singla Constructions Pvt. Ltd.; Respondent: State of Himachal Pradesh; Respondent: Himachal Pradesh Public Works Department
Jurisdiction
India
Judgment Date
04 December 2018
Procedural Posture
Civil Appeal / Appeal From High Court Judgment and Review Petition
Outcome
Appeals disposed of
Legal Topics
Appointment of Arbitrator, Termination of Arbitration Proceedings, Effect of Contractual Arbitration Clauses, Applicability of Arbitration and Conciliation (amendment) Act, 2015
Arbitration Appointment of Arbitrator Termination of Arbitration Proceedings Effect of Contractual Arbitration Clauses Applicability of Arbitration and Conciliation (amendment) Act, 2015

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Parties

SP Singla Constructions Pvt. Ltd.

Appellant

State of Himachal Pradesh

Respondent

Himachal Pradesh Public Works Department

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment and Review Petition

Legal Issues

  1. 1 Whether challenge to appointment of arbitrator by designation (Superintendent Engineer, Arbitration Circle) is valid under Section 11(6) of the Arbitration and Conciliation Act, 1996
  2. 2 Whether Section 12(5) of the Arbitration and Conciliation (Amendment) Act, 2015 applies to arbitral proceedings commenced before its enactment
  3. 3 Whether termination of arbitral proceedings under Section 25(a) was correct without warning to the contractor

Ratio Decidendi

Appointment of the arbitrator by designation as per clause (65) of the contract was valid. The provisions of Section 12(5) of the Amendment Act, 2015 do not apply as proceedings commenced before the amendment. Challenge to appointment must be raised before the arbitrator first. Termination of arbitral proceedings was incorrect as no warning was issued before termination; opportunity should be given to contractor to file claim before departmental arbitrator.

Court Disposition

Appeals disposed of

Orders

  • Order dated 06.08.2014 terminating arbitral proceedings is set aside.
  • Chief Engineer, Himachal Pradesh Public Works Department directed to appoint an arbitrator as per clause (65) of the contract.