THE STATE OF BIHAR & ORS. versus M/S BRAHMAPUTRA INFRASTRUCTURE LIMITED

THE STATE OF BIHAR & ORS. versus M/S BRAHMAPUTRA INFRASTRUCTURE LIMITED

Since the contract stipulated applicability of the Arbitration and Conciliation Act, 1996, the Bihar Public Works Contracts Arbitration Tribunal Act, 2008 does not apply; Section 4(3)(b) of the State Act is unconstitutional for violating Article 14 and the principle of impartiality in quasi judicial functions.

Parties
Appellant: The State of Bihar; Respondent: M/S Brahmaputra Infrastructure Limited
Jurisdiction
India
Judgment Date
22 March 2018
Procedural Posture
Civil Appeal / Appeal From High Court Decision
Outcome
appeal dismissed
Legal Topics
Appointment of Arbitrator, Exclusion of Central Act by State Act, Constitutionality of Tenure Provisions, Works Contract Arbitration, Impartiality of Arbitrators
Arbitration Constitutional Law Contract Law Appointment of Arbitrator Exclusion of Central Act by State Act Constitutionality of Tenure Provisions Works Contract Arbitration Impartiality of Arbitrators

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Parties

The State of Bihar

Appellant

M/S Brahmaputra Infrastructure Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Decision

Legal Issues

  1. 1 Whether appointment of arbitrator under Section 11(6) of Arbitration and Conciliation Act, 1996 is excluded by Bihar Public Works Contracts Arbitration Tribunal Act, 2008
  2. 2 Constitutionality of Section 4(3)(b) of Bihar Public Works Contracts Arbitration Tribunal Act, 2008

Ratio Decidendi

Since the contract stipulated applicability of the Arbitration and Conciliation Act, 1996, the Bihar Public Works Contracts Arbitration Tribunal Act, 2008 does not apply; Section 4(3)(b) of the State Act is unconstitutional for violating Article 14 and the principle of impartiality in quasi judicial functions.

Court Disposition

appeal dismissed

Orders

  • Appeals are dismissed.
  • Appellant-State permitted to apply to High Court for change of Arbitrator on neutrality objection.