{"id":213108,"date":"2019-04-02T08:34:21","date_gmt":"2019-04-02T03:04:21","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=213108"},"modified":"2019-04-05T10:42:52","modified_gmt":"2019-04-05T05:12:52","slug":"court-cant-directly-appoint-arbitrator-if-parties-have-not-exhausted-remedies-under-arbitration-agreement","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/04\/02\/court-cant-directly-appoint-arbitrator-if-parties-have-not-exhausted-remedies-under-arbitration-agreement\/","title":{"rendered":"Court can\u2019t directly appoint arbitrator if parties have not exhausted remedies under Arbitration Agreement"},"content":{"rendered":"

Supreme Court<\/strong>: The bench of AM Khanwilkar and Ajay Rastogi, JJ has held that the Chief Justice or\u00a0\u00a0 his Designate, in exercise of power under Section 11(6) of the \u00a0Arbitration\u00a0and\u00a0Conciliation\u00a0Act,\u00a01996, cannot directly make an appointment of an independent arbitrator without, in the first instance, resorting to ensure that the remedies provided under the arbitration agreement are exhausted.<\/p>\n

Clause (c) of sub\u00adsection (6) of Section 11 relates to failure to perform any function entrusted to a person including an institution and also failure to act under the procedure agreed upon by the parties. Noticing the intent behind the said clause, the Court explained the scheme of Section 11(6) and said,<\/p>\n

\n

\u201cclause(a) refers to the party failing to act as required under that procedure; clause(b) refers to the agreement where the parties fails to reach to an agreement expected of them under that procedure and clause (c ) relates to a person which may not be a party to the agreement but has given his consent to the agreement and what further transpires is that before any other alternative is resorted to, agreed procedure has to be given its precedence and the terms of the agreement has to be given its due effect as agreed by the parties to the extent possible.\u201c<\/p>\n<\/blockquote>\n

The Court hence held that corrective measures have to be taken first and the Court is the last resort<\/em>.<\/p>\n

The Court also noticed that by appointing an arbitrator in terms of sub\u00adsection (8) of Section 11 of Act, 1996, due regard has to be given to the qualification required for the arbitrator by the agreement of the parties and also the other considerations such as to secure an independent and impartial arbitrator.<\/p>\n

The Court, hence, held,<\/p>\n

\n

\u201cTo fulfil the object with terms and conditions which are cumulative in nature, it is advisable for the Court to ensure that the remedy provided as agreed between the parties in terms of the contract is first exhausted.\u201d<\/p>\n<\/blockquote>\n

[Union of India v. Parmar Construction Company, 2019 SCC OnLine SC 442<\/b><\/a>, decided on 29.03.2019]<\/p>\n","protected":false},"excerpt":{"rendered":"

Supreme Court: The bench of AM Khanwilkar and Ajay Rastogi, JJ has held that the Chief Justice or\u00a0\u00a0 his Designate, in exercise <\/p>\n","protected":false},"author":121,"featured_media":154914,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[24904,3226,10111,34693],"class_list":["post-213108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-appointment-of-arbitrator","tag-arbitration","tag-arbitration-agreement","tag-section-116-of-arbitration-and-conciliation-act"],"yoast_head":"\nCourt can\u2019t directly appoint arbitrator if parties have not exhausted remedies under Arbitration Agreement | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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Krishna Kumar, J., allowing the present petition for the appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, held that, the decision made is restricted to the peculiar facts of the instant case and shall not be treated as a\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":254584,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/09\/23\/arbitration-and-conciliation-act-3\/","url_meta":{"origin":213108,"position":2},"title":"Chairman of party who entered into arbitration, can he be categorised as eligible under Arbitration and Conciliation Act? 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Shah and Aniruddha Bose, JJ., held that, Though the word 'Chairman' is not mentioned explicitly in Seventh Schedule, at the same time, it would fall under clause 1, clause 2, clause 5, and\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":272263,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/08\/26\/calcutta-high-court-conduct-of-parties-not-a-substitute-for-an-arbitration-agreement\/","url_meta":{"origin":213108,"position":3},"title":"Calcutta High Court | Conduct of Parties – not a substitute for an arbitration agreement","author":"Editor","date":"August 26, 2022","format":false,"excerpt":"\u00a0 \u00a0 Calcutta High Court: While deciding a review petition, Debangsu Basak, J. held that the court while exercising powers under Section 11 of the Arbitration and Conciliation Act, 1996 cannot substitute arbitration agreement with conduct of parties. Facts of the Case The respondent filed an application under Section 11\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Calcutta High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":298424,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/08\/03\/mere-use-of-word-arbitration-or-arbitrator-not-enough-to-construe-an-arbitration-agreement-delhi-hc\/","url_meta":{"origin":213108,"position":4},"title":"Mere use of word \u2018arbitration\u2019 or \u2018arbitrator\u2019 not enough to construe an agreement to be an arbitration agreement: Delhi High Court","author":"Editor","date":"August 3, 2023","format":false,"excerpt":"\u201cIt is palpably clear that the language of the purported arbitration clause must evidence an unambiguous, explicit and unequivocal intention to refer the disputes to arbitration, leaving no room for doubt that parties chose arbitration as their only mode of resolution of disputes.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"delhi high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":272655,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/08\/30\/calcutta-high-court-illegal-procedure-for-appointment-of-arbitrator-does-not-render-arbitration-agreement-illegal-in-toto-guiding-principles-for-appointment-of-arbitrator-reiterated\/","url_meta":{"origin":213108,"position":5},"title":"Calcutta High Court | Illegal procedure for appointment of Arbitrator does not render Arbitration agreement illegal in toto; Guiding Principles for Appointment of Arbitrator reiterated","author":"Editor","date":"August 30, 2022","format":false,"excerpt":"\u00a0 \u00a0 Calcutta High Court: In a petition challenging the appointment of sole Arbitrator by the respondent, Shekhar B. Saraf, J., held that merely because an arbitration clause provides for an illegal method of appointment of arbitrator, it does not come to an end and after removing the illegal portion\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Calcutta High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/213108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/121"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=213108"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/213108\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/154914"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=213108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=213108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=213108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}