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        Companies Law

        2013 (4) TMI 279 - HC - Companies Law

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        Section 11(6) appointment challenges cannot displace an existing arbitrator; jurisdictional objections belong before the tribunal under section 16. An application under section 11(6) of the Arbitration and Conciliation Act, 1996 is not maintainable where a sole arbitrator has already been appointed ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Section 11(6) appointment challenges cannot displace an existing arbitrator; jurisdictional objections belong before the tribunal under section 16.

                              An application under section 11(6) of the Arbitration and Conciliation Act, 1996 is not maintainable where a sole arbitrator has already been appointed and has entered upon reference, because no vacancy exists for a fresh court appointment. Any challenge that the respondent's appointment was not made in accordance with the contract, or was otherwise invalid, concerns the arbitrator's jurisdiction and may be raised before the tribunal under section 16. The note therefore states that section 11(6) proceedings are not the proper forum to test the validity of an existing arbitral appointment, and that such objections are left for determination in the arbitral process.




                              Issues: Whether an application under section 11(6) of the Arbitration and Conciliation Act, 1996 was maintainable for appointment of an arbitrator when the respondent had already appointed an arbitrator, and whether the validity of that appointment could be examined in proceedings under section 11(6).

                              Analysis: The application was filed after the respondent had appointed a sole arbitrator and the arbitrator had entered upon reference. The Court held that, in such circumstances, there was no vacancy requiring an appointment by the Chief Justice or his designate under section 11(6). The question whether the respondent's appointment was in accordance with the contractual procedure or was otherwise invalid was held to be a matter touching the arbitrator's jurisdiction. Such a challenge was held to be capable of being raised before the arbitrator under section 16 of the Act, and not for decision in a section 11(6) proceeding.

                              Conclusion: The application for appointment of an arbitrator was not maintainable and no appointment was made; the issue of validity of the respondent's appointment was left open for decision under section 16.

                              Final Conclusion: The Court declined to interfere with the existing arbitral appointment and relegated the parties to the arbitral forum for jurisdictional objections.

                              Ratio Decidendi: Where an arbitrator has already been appointed under the contract and has entered reference, a court acting under section 11(6) will not ordinarily decide the validity of that appointment and the challenge to jurisdiction must be raised before the arbitral tribunal under section 16.


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                              ActsIncome Tax
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