28 June 2022
Appointment of arbitrator application filed after many years: application dismissed by the Jharkhand High Court
The Jharkhand High Court has ruled That; if the application for appointment of an arbitrator under section 11(6)(c) of the Arbitration and Conciliation Act, 1966 (A&C Act) is itself not maintainable on the ground of inordinate delay in filing it, the issue of limitation cannot be referred to the arbitrator for adjudication.
The single bench of justice Sunjit Narayan prasad held that; in view of the decision of the supreme court in the case of Bharat Sanchar Nigam Limited and Another versus Nortel Network Pvt Ltd (2021), the issue of limitation is required to be answered at the threshold itself, ie, at the stage where the application filed under section 11(6)© of the a&c act is considered by the court
The petitioner/applicant Jharia Petrol Supply entered into a dealership agreement with; the respondent Indian Oil Corporation Limited for the sale of petroleum products. After the said agreement terminated by; the respondent, the petitioner filed; a writ petition before the Jharkhand High Court challenging; the termination of the agreement.
The writ petition dismissed by; the High Court on the ground that; the alternative remedy of an arbitration clause in the said agreement was available to the petitioner. Against this, the petitioner filed an intra-court appeal before; the Division Bench of the Jharkhand High, which also dismissed on the ground of the; availability of the alternative remedy of arbitration.
The Bench Department has given plaintiffs the freedom to apply to defendants to appoint an arbitrator while dismissing the appeal. After the defendant did not respond to the application for the appointment of; an arbitrator, the petitioner submitted an application for the appointment of an arbitrator to the Jharkhand High Court under Section 11 (6) (c) of the A & C Act.
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