2003 (1) TMI 538

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....y fact which needs to be mentioned at this stage is that the arbitration proceedings have been continuing before an Arbitral Tribunal which was lastly comprised of Hon'ble Mr. Justice P.K. Palli, Retired Judge and Shri V.P. Gupta officer/nominee of respondent as Arbitrators and Justice A.B. Rothagi (Retired Judge) as Presiding Arbitrator. 3. Vide letter dated 2-7-2002, Shri V.P. Gupta the nominee of respondents on the Arbitral Tribunal, resigned. Thereupon in the next meeting of the Arbitral Tribunal dated 6-7-2002, the respondents were called upon to nominate another arbitrator in place of Shri V.P. Gupta. 4. The respondent No. 1, vide impugned communication/order dated 31-7-2002, declined to appoint another arbitrator on the ground that....

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.... to respondent No. 1, to appoint its nominee Arbitrator in place of Shri V.P. Gupta who has resigned within a period of 15 days from the date of this judgment. In case for any reason the respondent No. 1 either delays or does not appoint any nominee Arbitrator within the stipulated period, then Ms. Justice Sharda Aggarwal (Retired Judge of this Court) shall be the nominee Arbitrator in place of Shri V.P. Gupta who has resigned and whose vacancy has not been filled up by respondent No. 1, despite opportunity granted for the said purpose. 9. It need to be emphasized that as per the scheme of the new Arbitration Act, 1996, it is imperative that the arbitral proceedings should be allowed to continue in a smooth manner so as to achieve expediti....

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....ex Court in Konkan Railway Corpn. Ltd. v. Mehul Construction Co. [2000] 7SCC 2011 that section 16 empowers the Arbitral Tribunal to rule on its own as well as on objections with respect to the existence or validity of the arbitration agreement. This being the legislative intent it would be proper for the Chief Justice or his nominee just to appoint an Arbitrator without wasting any time or without entertaining an contentious issues at that stage, by a party objecting to the appointment of an Arbitrator. It has been further held by the Apex Court in Nimet Resources Inc. v. Essar Steels Ltd. [2000] 7 SCC 4971 that. . . "it is no doubt permissible under section 11 of the Act to decide a question as to the existence or otherwise of the arbitrat....