Saraf Raj Mohammad v. Chairman, Nagar Palika Parishad
2020-06-11
MANOJ KUMAR GUPTA
body2020
DigiLaw.ai
ORDER : Manoj Kumar Gupta, J. 1. The instant application has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act') seeking appointment of an arbitral tribunal through intervention of this Court in exercise of power under Section 11 of the Act. 2. Learned counsel for the applicant upon being asked to show the arbitration agreement between the parties, he submitted that there is no such agreement. He further submitted that since there is no arbitration clause in the work order in relation to which arbitration is being sought, therefore, he has invoked sub-section (3) of Section 11. 3. The submission made by learned counsel for the applicant is wholly misconceived. In my considered opinion, in the absence of an arbitration agreement, this Court has no power to compel any party to get the dispute settled through arbitration unless they voluntarily agree for the same. Section 11 (2), (3), (4), (5) and (6) which are relevant, are reproduced below:- "(2) Subject to sub-section (6), the parties are free to agree on a procedure for appointing the arbitrator or arbitrators. (3) Failing any agreement referred to in sub-section (2), in an arbitration with three arbitrators, each party shall appoint one arbitrator, and the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator.
(3) Failing any agreement referred to in sub-section (2), in an arbitration with three arbitrators, each party shall appoint one arbitrator, and the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator. (4) If the appointment procedure in sub-section (3) applies and-(a) a party fails to appoint an arbitrator within thirty days from the receipt of a request to do so from the other party; or (b) the two appointed arbitrators fail to agree on the third arbitrator within thirty days from the date of their appointment, "the appointment shall be made, on an application of the party, by the arbitral institution designated by the Supreme Court, in case of international commercial arbitration; or by the High Court, in case of arbitrations other than international commercial arbitration, as the case maybe"; (5) Failing any agreement referred to in sub-section (2), in an arbitration with a sole arbitrator, if the parties fail to agree on the arbitrator within thirty days from receipt of a request by one party from the other party, to so agree, "the appointment shall be made on an application of the party in accordance with the provisions contained in sub-section (4)"; (6) Where, under an appointment procedure agreed upon by the parties, (a) a party fails to act as required under that procedure; or (b) the parties, or the two appointed arbitrators, fail to reach an agreement expected of them under that procedure; or (c) a person, including an institution, fails to perform any function entrusted to him or it under that procedure, "the appointment shall be made, on an application of the party, by the arbitral institution designated by the Supreme Court, in case of international commercial arbitration, or by the High Court, in case of arbitrations other than international commercial arbitration, as the case may be"; to take the necessary measure, unless the agreement on the appointment procedure provides other means for securing the appointment." 4. Section 11 of the Act falls under Chapter-III, which prescribes for the manner of composition of arbitral tribunal. Sub-section (2) prescribes that parties are free to agree on a procedure for appointing the arbitrator or arbitrators.
Section 11 of the Act falls under Chapter-III, which prescribes for the manner of composition of arbitral tribunal. Sub-section (2) prescribes that parties are free to agree on a procedure for appointing the arbitrator or arbitrators. Sub-section (3) states that in absence of any agreement referred to in sub-section (2) i.e. where there is no procedure stipulated in the agreement for appointment of arbitrator, there in an arbitration with three arbitrators, each party shall appoint one arbitrator, and the two appointed arbitrators shall appoint the third arbitrator who would act as the presiding arbitrator. Sub-section (4) further provides that in cases where the appointment procedure in sub-section (3) applies and a party fails to appoint an arbitrator within thirty days from the receipt of a request to do so from the other party; or the two appointed arbitrators fail to agree on the third arbitrator within thirty days from the date of their appointment, the appointment shall be made, on an application of the party, by the arbitral institution designated by the Supreme Court, in case of international commercial arbitration, or by the High Court, in case of arbitrations other than international commercial arbitration, as the case may be. Sub-section (5) further makes the thing clear when it provides that in absence of any agreement referred to in sub-section (2), in an arbitration with a sole arbitrator, if the parties fail to agree on the arbitrator within thirty days from receipt of a request by one party from the other party to so agree, the appointment shall be made on an application of the party in accordance with the provisions contained in sub-section (4).
Again, sub-section (6) provides that where under an appointment procedure agreed upon by the parties, if a party fails to act as required under that procedure; or the parties, or the two appointed arbitrators, fail to reach an agreement expected of them under that procedure; or a person, including an institution, fails to perform any function entrusted to him or it under that procedure, the appointment shall be made, on an application of the party, by the arbitral institution designated by the Supreme Court, in case of international commercial arbitration, or by the High Court, in case of arbitrations other than international commercial arbitration, as the case may be, to take the necessary measure, unless the agreement on the appointment procedure provides other means for securing the appointment. 5. It is clear from bare perusal of the above provisions that Section 11 of the Act only deals with the procedure to be followed by a party for getting an arbitral tribunal constituted. It does not any where prescribe that where there is no arbitration agreement between the parties, still a party could approach the Court for getting an arbitrator appointed. Existence of an arbitral agreement is a sine qua non for invoking Section 11 of the Act. 6. The application is consequently dismissed.