Unless Appointment Of Arbitrator Under Arbitration Clause Is Ex-Facie Valid, Jurisdiction Of Court U/S 11(6) Cannot Be Barred: Rajasthan HC
Live LawThe Rajasthan High Court bench of Justice Sudesh Bansal affirmed that unless the appointment of the arbitrator is ex facie valid and such appointment satisfies the Court exercising jurisdiction under Section 11 of the Arbitration Act, acceptance of such appointment as a fait accompli to debar the jurisdiction under Section 11 cannot be countenanced in law. Contentions The applicant/petitioner submitted that in the original constitution of 'Shri Mahehswari Samaj', Clause 39 provides a mechanism to resolve the dispute in respect of constitution of Samaj through Arbitration and a high level Committee comprising five members to be appointed by the Executive Committee of 'Shri Mahehswari Samaj' would decide the dispute, whose decision shall be final and binding upon all parties. The court noted that the Supreme Court has held in Perkins Eastman Architects DPC Vs. HSCC Limited that unless the appointment of the arbitrator is ex facie valid and such appointment satisfies the Court exercising jurisdiction under Section 11 of the Arbitration Act, acceptance of such appointment as a fait accompli to debar the jurisdiction under Section 11 cannot be countenanced in law. Rather, it can be held that for resolution of the present dispute, the appointed Resolution Committee of five members cannot be accepted as a fait accompli, to declare the present arbitration application as not maintainable and the High Court may exercise its jurisdiction under Section 11 of the A&C Act to appoint an independent, impartial and neutral Arbitration Tribunal, the court noted. There is no embargo for consideration of an arbitration Tribunal of sole arbitrator, de hors to the procedure agreed upon by the parties to appoint a panel of five arbitrators here by virtue of Section 10 of the A&C Act, this Court may deviate from the appointment of number of Arbitrators, unilaterally decided by the non-applicants and in the opinion of this Court, looking to the nature of subject matter of dispute, the constitution of Arbitration Tribunal of sole Arbitrator would be suffice, the court noted.