Indian Kanoon - Search engine for Indian Law

Gujarat High Court

Heirs Of Legal Of Sidhrajsinhji ... vs Bengal Cynosure Development Private ... on 29 July, 2015

Author: N.V.Anjaria

Bench: N.V.Anjaria

         C/SCA/11903/2015                                         ORDER




         IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

            SPECIAL CIVIL APPLICATION NO. 11903 of 2015

==========================================================
HEIRS OF LEGAL OF SIDHRAJSINHJI PRAGRAJSINHJI & 2....Petitioner(s)
                             Versus
      BENGAL CYNOSURE DEVELOPMENT PRIVATE LIMITED &
                       2....Respondent(s)
==========================================================
Appearance:
MR SHALIN MEHTA, LD. SR. ADVOCATE WITH MS VIDHI J BHATT,
ADVOCATE for the Petitioner(s) No. 1 - 1.4 , 2 - 3
==========================================================

         CORAM: HONOURABLE MR.JUSTICE N.V.ANJARIA

                             Date : 29/07/2015

                                 ORAL ORDER

Learned advocate, at the outset, gives up the prayer in paragraph 22(C).

2. Heard learned senior counsel Mr.Shalin Mehta assisted by learned advocate Ms.Vidhi J. Bhatt.

3. The prayer in this petition is to set aside the arbitration award dated 14th November, 2013 passed by the Sole Arbitrator-respondent No.3 herein. Learned senior counsel demonstrated from the facts in the background and attendant to the subject matter of arbitration, that the award of the Arbitrator suffers from vice of personal bias as well as bias to the subject matter, and therefore, it was submitted, that there is an illegality in the very root of assumption of jurisdiction by the Arbitrator.

4. Reliance was placed on the decision of the Apex Court decision in Bihar State Mineral Development Corporation and another Vs Encon Builders (I)(P) Limited [(2003) 7 SCC 418] to submit that bias on part of the adjudicating authority or forum goes to the root of the jurisdiction and renders the entire action and decision to be a nullity. Encon Builders (I) (P) Limited (supra) was a case under the Arbitration Act relating to the role of the Arbitrator in passing the award. Another decision in Rattan Lal Sharma Vs Managing Committee, Dr.Hari Ram (Co- Education) Higher Secondary School and others [(1993) 4 SCC 10] was also pressed into service.

4.1 Learned senior counsel further submitted that under Section 34 of the Arbitration and Conciliation Act, 1996, ground of bias to challenge the arbitration award is not available.

5. Without expressing anything finally on the above submissions, Notice, returnable on 12th August, 2015.

6. Direct service in respect of respondent No.3 is permitted. Respondent Nos.1 and 2 are permitted to be served, in addition to normal mode of service, by Speed Post, at the cost of the petitioners.

(N.V.ANJARIA, J.) Anup Page 2 of 2