UNION OF INDIA AND ANR. versus M/S. V.S. ENGINEERING (P) LTD.

UNION OF INDIA AND ANR. versus M/S. V.S. ENGINEERING (P) LTD.

The High Court was not justified in appointing an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 as the Railway authorities had already constituted an arbitral tribunal as per the General Conditions of Contract. Appointment of sole arbitrator by the High Court is set aside and direction given to Railway authorities to appoint an arbitral tribunal as per contract within 30 days.

Parties
Appellant: Union of India and Anr.; Respondent: M/s V.S. Engineering (P) Ltd.
Jurisdiction
India
Judgment Date
16 November 2006
Procedural Posture
Civil Appeal / Final Judgment on Appeal From High Court Orders
Outcome
Appeal allowed
Legal Topics
Appointment of Arbitrator Under Arbitration and Conciliation Act, 1996, General Conditions of Railways Contract, Delay in Appointment of Arbitral Tribunal by Public Authorities
Arbitration Appointment of Arbitrator Under Arbitration and Conciliation Act, 1996 General Conditions of Railways Contract Delay in Appointment of Arbitral Tribunal by Public Authorities

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Parties

Union of India and Anr.

Appellant

M/s V.S. Engineering (P) Ltd.

Respondent

Procedural Posture

Civil Appeal / Final Judgment on Appeal From High Court Orders

Legal Issues

  1. 1 Whether High Court was justified in appointing an arbitrator under Section 11 of Arbitration and Conciliation Act, 1996 when the Railway authorities had already constituted an arbitral tribunal as per General Conditions of Contract

Ratio Decidendi

The High Court was not justified in appointing an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 as the Railway authorities had already constituted an arbitral tribunal as per the General Conditions of Contract. Appointment of sole arbitrator by the High Court is set aside and direction given to Railway authorities to appoint an arbitral tribunal as per contract within 30 days.

Court Disposition

Appeal allowed

Orders

  • Orders of the High Court set aside
  • General Manager, Railway directed to appoint arbitral tribunal within 30 days from receipt of certified copy of order