The Judgement was passed by Delhi Court on the issue of appointment of arbitrators to form an arbitral tribunal.
Section 11 of the Act pertains to the procedure to appoint arbitrators . First one is by an application to the concerned high court for appointing a sole arbitrator whereas the second procedure requires that two arbitrators appointed by the parties to the arbitration agreement shall appoint a third presiding arbitrator .
Section 14 of the Act deals with the resignation/termination of the appointed arbitrator.The grounds for resignation are inability to perform the duty de jure or de factory or where he himself withdraws from the case citing any other reasons.The grounds for termination can relate to the independencey or impartiality of the arbitrator where the parties can terminate the mandate of the tribunal.
It is Pertinent to mention here the judgement of perkins Eastman.In this Judgement the supreme court has held that a party does not have a sole rights in appropriating an arbitrators.The parties individually or together must first approach the high court for appointment of the arbitrator.Therefore where an arbitration clause give right to only one party to appoint an arbitrator the party cannot appoint the arbitrators itself and initiate the proceedings.
The Delhi high court in the Judgement Raksha Vigyan Karamchari Sahkari Awas Samiti V/S Proto Developers and technologies Pvt Ltd held that where a party appoint a sole arbitrators without approaching the court then the appointment shall be invalidated and the second party has the right to approach the court under sec 14 .
The Respondent in this case has solely appointed an arbitrator without court intervention. The Petitioner then approached the Delhi High Court for appointment of the arbitrator to which the Respondent objected.However,the court in this case dismissed the sec 11 petition with the liberty to the petitioners to approach the court under section 14 of the act.There by rejecting the appointment of the arbitrator by the respondent and then replacing the appointment with another arbitrator .
This is perfect example of conversation of Section 11 application into Section 14 application .
BY MANVI SINGH….