Document Fragment View
Fragment Information
Showing contexts for: arbitration section 12 in Simplex Infrastructures Ltd. vs Rail Vikas Nigam Limited on 11 December, 2018Matching Fragments
11. Subsequently, in Larsen & Tourbro(supra), this Court while considering the issue of the respondent forwarding only a list of five persons for the petitioner to choose its nominee arbitrator from, has held as under:
"10. Following the reasoning given by this Court in Bernard Ingenieure ZT - GMBH (supra), in my opinion, in the present case also, as the respondent has forwarded only a list of five persons to the petitioner, from which it has called upon the petitioner to choose one Arbitrator as its nominee, the respondent has failed to discharge the obligations that have been cast upon it under the Arbitration Agreement read with Section 12 of the Amended Act and is therefore, deemed to have fortified its right under the said Agreement."
12. In NCCL-Premco (supra), this Court further reiterated as under:
"......As noted above, this Court in Larsen & Toubro Ltd. (supra) in similarly situated facts had held that mere forwarding of a list of five persons (in that case) would be a failure of the respondent to discharge its obligations that have been cast upon it under the Arbitration Agreement read with Section 12 of the Amended Act as also the Judgment of the Supreme Court in Voestalpine Schienen (supra).
11. As in spite of the judgment of the Supreme Court in Voestalpine Schienen (supra) and of this Court in Larsen & Toubro Ltd. (supra), the respondent insisted on giving only a limited number of names from its panel of Arbitrators to the ARB.P 519/2018 Page 7 petitioner for choosing its nominee Arbitrator, the same clearly amounts to a failure on part of the respondent to act in accordance with the Arbitration Agreement read with Section 12 of the Amended Act.
13. Be that as it may, as the respondent had failed to discharge its obligations in terms of the Arbitration Agreement read with Section 12 of the Act, the appointment of the nominee Arbitrator of the petitioner is confirmed."
13. As noted in the above judgments, this Court has held that the respondent cannot insist upon the procedure prescribed in Clauses similar to Clause 17.3 (ii) of the Agreement by forwarding only a panel of five names for the other contracting party to choose its nominee Arbitrator from. This procedure is no longer valid and the respondent must broad base its panel of Arbitrators by including names of Engineers of prominence and high repute from the private sector, persons with legal background like Judges and lawyers of repute, people having knowledge and expertise in accountancy etc. ARB.P 519/2018 Page 8