Applications For Appointment Of Arbitrator Should Be Decided And Disposed At The Earliest:Supreme Court

The bench of Justices MR Shah and BV Nagarathna also observed that arbitration applications for appointment of an Arbitrator are required to be decided and disposed of at the earliest, otherwise the object and purpose of the Arbitration Act shall be frustrated.

"It is very sorry state of affairs that the arbitration application under Section 11 has been decided and disposed of after a period of four years. The arbitration applications for appointment of an Arbitrator are required to be decided and disposed of at the earliest, otherwise the object and purpose of the Arbitration Act shall be frustrated."

Referring to the amended Arbitration Act wherein arbitration proceedings are required to be disposed of within one year, the bench said, "If the Section 11 application itself is not decided within one year, even the purpose and object of the amended Arbitration Act shall also be frustrated."

Terming the State of Affairs as "sorry", the Top Court directed the Registrar General of the High Court for the State of Telangana at Hyderabad to submit a detailed report/statement pointing out how many Section 11 applications were pending before the High Court and from which year. The bench directed the report to be submitted till April 19, 2022.

The directions were issued and observation was rendered by the bench while considering a special leave petition assailing Telangana High Court's order dated June 30, 2020 by which the High Court had dismissed/disposed of the Arbitration Application to appoint the Arbitrator, which was filed under Section 11 (5) of the Arbitration and Conciliation Act, 1996.

"The Registry is directed to communicate this order to the Registrar General of the High Court during the course of the day. The Registrar General of the High Court is directed to place this order before the Hon'ble Chief Justice of the High Court for the State of Telangana," the bench in its order said.

It may be noted that the Top Court on April 1 had also expressed concerns at the pendency of execution proceedings for executing the award in Arbitration Matters before subordinate courts/executing courts in the State of Uttar Pradesh.

The Top Court had also asked the Registrar General of the High Court of Judicature at Allahabad and the Lucknow Bench to place on record (i) how many execution petitions to execute the Award both under the Arbitration Act, 1940 and under the Arbitration and Conciliation Act, 1996 are pending in the subordinate courts/executing courts in the entire State; (ii) how many Section 34 applications are pending in the entire State and from which year and (iii) how many Section 37 applications are pending before the High Court and from which year.

Case Title: M/S Shree Vishnu Constructions V The Engineer In Chief Military Engineering Service & ors

Case No: Special Leave to Appeal (C) No(s). 5306/2022

Citation: 2022 LiveLaw (SC) 345

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