Unconditional Withdrawal Of Arbitrator Appointment Application Bars Second Application On Same Cause Of Action: Supreme Court
The Supreme Court observed that when a party seeking appointment of an arbitrator unconditionally withdraws its application, then the subsequent application for an appointment of an arbitrator on the same cause of action would be barred.The bench comprising Chief Justice DY Chandrachud and Justice JB Pardiwala ruled that Order 23 Rule 1 of Civil Procedure Code, 1908 would be. The bench comprising Chief Justice DY Chandrachud and Justice JB Pardiwala ruled that Order 23 Rule 1 of Civil Procedure Code, 1908 would be made applicable to applications seeking appointment of an arbitrator under Section 11 of the Arbitration & Conciliation Act, 1996 to restrain the party from filing second arbitrator appointment application when it had abandoned the arbitration in its first application. “One important aspect that needs to be kept in mind while applying the principles of Order 23 Rule 1 to applications under Section 11 of the Act, 1996 is that it will act as a bar to only those applications which are filed subsequent to the withdrawal of a previous Section 11 application filed on the basis of the same cause of action. Since Section 11 isn't filed as a suit but as an application, thus, it argued that maintainability of the second application would not be barred under Order 23 Rule 1 CPC.
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