LAWS(SC)-2019-3-152

UNION OF INDIA Vs. PARMAR CONSTRUCTION COMPANY

Decided On March 29, 2019
UNION OF INDIA Appellant
V/S
Parmar Construction Company Respondents

JUDGEMENT

(1.) Leave granted.

(2.) The question that arises for consideration in the batch of appeals by special leave is as to whether (1) the High Court was justified in invoking amended provision which has been introduced by Arbitration and Conciliation (Amendment Act ), 2015 with effect from 23rd October, 2015(hereinafter being referred to as " Amendment Act , 2015"); (2) whether the arbitration agreement stands discharged on acceptance of the amount and signing no claim/discharge certificate and (3) whether it was permissible for the High Court under Section 11(6) of the Arbitration and Conciliation Act , 1996(prior to the Amendment Act , 2015) to appoint third party or an independent Arbitrator when the parties have mutually agreed for the procedure vis­à­vis the authority to appoint the designated arbitrator. The High Court has passed separate orders in exercise of its powers under Section 11(6) of the Act, 1996 in appointing an independent arbitrator without adhering to the mutually agreed procedure under the agreement executed between the parties. Since the batch of appeals involve common questions of law and facts with the consent of parties, are disposed off by the present judgment.

(3.) The facts have been noticed from civil appeal arising out of SLP(Civil) no. 2166 of 2018.