Volume 2 Issue 7

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Multiple arbitration can exist if the cause of action continues: Delhi HC

Date of News: 

19-01-2022

Date of Publication: 

10-02-2022

Unique ID:

202281504

Name of the Author: 

Pranjal Singh

Field of Law: 

Alternative Dispute Resolution

Content of News:

The Delhi HC comprising of the bench of Justice Suresh Kumar Kait while dismissing the petition seeking appointment of respondent�s arbitrators under section 11(6) of the Arbitration and Conciliation act, 1996. The bench observed that as there are proceedings pending before an arbitral tribunal and if the dispute is referred to the second arbitral tribunal it may result in delay of proceedings before the second arbitral tribunal. The petitioner argues that by filing a petition under section 11 of arbitration and conciliation act respondent has forfeited his right to appoint an arbitrator. He also contended that the appointment of arbitrator was in contravention of entry 22 of 5th schedule of the arbitration act. The respondent contended that the present petition is malafide with an intention to create confusion. He also contended that present petition under 11(6) deserves to be rejected as it has been filed on false pretext that the respondent had failed to appoint its nominee arbitrator within 30 days as the respondent was in continuous touch with the petitioner in relation to appointment of a nominee. The court observed that multiple arbitration can exist if the cause of action continues or arises after constitution of the tribunal. The petitioner has not been able to establish whether the cause of action was suspended before beginning of the proceedings under third arbitral tribunal. The honorable court held that objections raised by the petitioners with regard to the appointment of arbitrator are liable to be rejected.

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