DENEL (PROPRIETARY LIMITED) SOUTH AFRICA Vs. LORD GORDON

JUDGEMENT

(1.) This petition has been preferred by the Petitioner under Section 14(2) of the Arbitration and Conciliation Act, 1996 to seek a declaration that the mandate of Respondent Nos. 1 and 2, as arbitrators, stand terminated. Further directions are sought with regard to the entitlement of the fee paid and payable to Respondent Nos. 1 and 2 as arbitrators.

(2.) The Petitioner entered into various contracts with the Respondent UOI for supply of defence equipments and technology. Disputes in relation to three of those contracts, namely:

(3.) The Petitioner, vide its communication dated 21.08.2008 sought to terminate the mandate of the arbitral Tribunal. Consequently, Mr. Justice R. N. Mishra (Retd.) resigned from the Tribunal on 1/2.9.2008. During the pendency of this petition, Lord Slynn, the Chair Person has also passed away. Mr. Justice V.N. Khare (Retd.) Chief Justice of India Respondent No. 2 is the only surviving Arbitrator from the aforesaid panel. In the meantime, the Petitioner has nominated Mr. Justice Arun Kumar, (Retd.) Judge, Supreme Court of India as an Arbitrator in place of Mr. Justice R.N. Mishra, former Chief Justice of India. The parties have not yet been able to agree upon the replacement of Lord Slynn to act as the Chair Person of the arbitral tribunal. Since Mr. Justice R.N. Mishra had resigned from his position as one of the Arbitrators, the remaining two learned Arbitrators, namely Lord Slynn and Mr. Justice V.N. Khare, vide communication 24.09.2008 held that the mandate of the arbitral tribunal does to stand terminated by operation of law for any reason alleged by the Petitioner in its communication dated 21.08.2008. Consequently, the Petitioner has preferred the present petition. Upon issuance of notice, the Respondents have filed their reply and a rejoinder has also been filed by the Petitioner.