JAGUAR OVERSEAS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) There is consensus between the parties as to the existence of an arbitration agreement that covers the disputes that have arisen between them and that there are live claims to be carried to an arbitral reference.

(2.) The arbitration agreement is found in Clause 70 of the general conditions governing contracts pertaining to the Military Engineering Services. The clause is set out:

(3.) Though the relevant clause provides for the arbitral reference to be taken up by a sole arbitrator who would be a serving officer having a degree in engineering or equivalent and would be appointed by the authority mentioned in such regard in the tender documents, the Union concedes that in view of the Arbitration and Conciliation Act, 1996 as it now stands after the amendment effected in October, 2015, a serving officer of the MES can no longer take up the reference. The petitioner has suggested that any retired Judge or active counsel may be appointed as arbitrator and a particular name has also been indicated. However, the Union submits that the Ministry of Defence has prepared a panel of arbitrators who are not serving officers and have no relationship with the Ministry of Defence. The Union suggests that any of the independent persons named in the Ministry's panel be appointed as sole arbitrator, subject to the other terms and conditions of the arbitration agreement embodied in Clause 70 of the general conditions.