Courts Cannot Recast The Terms Of Arbitration Agreement, Reiterates Delhi HC [Read Judgment]
The Delhi High Court has reiterated that court cannot recast the terms of an arbitration agreement entered into between parties and should rather make efforts to ensure that the parties adhere to the choice of the Arbitrator or to the mechanism for constituting the Arbitral Tribunal as envisaged by the Arbitration Agreement. Justice Sanjeev Narula observed, "The Court while exercising its power under Section 11 of the Arbitration and Conciliation Act, 1996 cannot recast the terms of the Contract and direct the parties to go for a composite arbitration contrary to the procedure prescribed under the arbitration clause provided in distinct arbitration agreements". Libra Automotives invoked the arbitration clause under the Agreements, vide letter dated 24th January 2019 and 28th January 2019 and requested the Respondents to either agree to appointment of a common Arbitrator to decide all the disputes in a tripartite arbitration or approach the Delhi International Arbitration Centre for the appointment of a sole Arbitrator. Ltd, Union of India v. Singh Builders Syndicate and others, Justice Narula said, "the supreme court has expressed its opinion that where an application under Section 11 of the Act is filed, the procedure for appointment of an arbitrator prescribed in the agreement, be given effect to and the Court ought not to appoint an independent arbitrator without resorting to the inbuilt mechanism as agreed between the parties".
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