Saturday, 23 June 2012

ACC Limited, (Formerly known as the Associated Cement Co. Ltd) Vs. Global Cements Ltd. - Jun 11, 2012


Arbitration and Conciliation Act, 1996 - Sections 11, 15(2), 7, 14; Chota Nagpur Tenancy Act, 1908 - Sections 71-A, 71-B; Andhra Pradesh (Talangana Area) Tenancy and Agricultural Lands Act, 1950 - Section 50-B; Punjab Municipal Act, 1911 - Sections 67, 68A.


In the present matter, an application was filed under section 11 of Arbitration and Conciliation Act for appointment of an Arbitrator which was allowed. And hence a petition was filed which was also the main issue in this matter viz. whether on the death of a named Arbitrator, the arbitration agreement survives or not. To consider this issue, sections 14 and 15 provided the grounds for termination of the authorization of the arbitrator on the ground of incapability of the arbitrator to act or if he withdrew from his office or when the parties agreed to the termination of the mandate of the arbitrator. It was also stated that if named arbitrators refused to arbitrate disputes it was possible for the parties to appoint a substitute arbitrator unless the clause provided something else. Objection could be raised by the parties only if there was a clear prohibition or debarment in resolving the question or dispute or difference between the parties in case of death of the named arbitrator or their non-availability, by a substitute arbitrator. The Supreme Court held that the arbitration clause 21 of the agreement did not prohibit the parties in appointing a substitute arbitrator in place of the named arbitrators and, in the absence of any prohibition or exclusion; parties could persuade the court for appointment of an arbitrator under clause 21 of the agreement. Cases referred to in this matter were: i.) Ibrahimpatnam Taluk Vyavasaya Coolie Sanghem vs. K. Suresh Reddy and Others AIR [2003 SC 3592] Consequently, the petition was dismissed.

With Regards
Prakash Verma