Section 11 Application Not Maintainable If Objection To Jurisdiction Of Arbitrator Rejected By Arbitral Tribunal: Allahabad High Court
1 year, 7 months ago

Section 11 Application Not Maintainable If Objection To Jurisdiction Of Arbitrator Rejected By Arbitral Tribunal: Allahabad High Court

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The Allahabad High Court has recently held that to challenge the jurisdiction of the arbitrator, once the same has been rejected by the Tribunal, the aggrieved party has to challenge the final award. The applicant cannot be permitted to circumvent the statutory scheme by invoking the jurisdiction of this Court under Section 11 of the Act of 1996, on the premise that the appointment of arbitrator itself is bad.” Due to a dispute between the parties, the Opposite Party appointed its arbitrator and also asked the Applicant to appoint its arbitrator. Section 16 is categorical and vests jurisdiction in the arbitrator to adjudicate upon his own jurisdiction.” With respect to the applicability of the decision of the Supreme Court in Perkins Eastman Architects DPC and another Vs. HSCC Ltd., as relied by the Applicant, the Court observed that “So far as the judgment in Perkins Eastman Architects DPC, relied upon by the learned counsel for the applicant, is concerned, the Court had merely followed previous judgment of the Supreme Court in TRF Limited Vs. Energo Engineering Projects Limited, 8 SCC 377, which arises out of a different exigency altogether. A person, who becomes ineligible on account of the said embargo becomes de jure unable to perform his functions, and therefore jurisdiction under Section 11 could be invoked for appointment of arbitrator.” Accordingly, the Court held that the applicant, herein, never contested that the arbitrator was ineligible to arbitrate in terms of Section 12 read with the 7th Schedule of the Act.

History of this topic

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