Arbitration: Where appellant failed to raise plea of jurisdiction before Arbitral Tribunal and participated in proceedings before arbitration so appointed without objection could not be permitted to raise it for first time before Supreme Court
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[2014] 48 taxmann.com 281 (SC)
SUPREME COURT OF INDIA
Union of India
v.
Pam Development (P.) Ltd.
SURINDER SINGH NIJJAR AND RANJANA PRAKASH DESAI, JJ.
CIVIL APPEAL NO. 5618 OF 2006†
FEBRUARY 18, 2014
Section 4, read with section 16 of the Arbitration and Reconciliation Act, 1996 - Waiver of right to object - Appellant entered into an agreement with respondent to construct an electric loco shed - Later, it terminated contract alleging delay on part of contracting firm and inferior quality of work - Respondent moved High Court to appoint an arbitrator - High Court appointed a retired judge as sole arbitrator who decided in favour of respondent - Appellant then moved High Court to set aside award - Court dismissed application, leading to appeal in Supreme Court - In Apex Court, appellant argued that Arbitral Tribunal was not properly constituted as appointment was against terms of contract - Whether since appellant had not raised any objection with regard to competence/jurisdiction of Arbitral Tribunal before arbitrator, same would be deemed to have been waived and could not be raised before instant Court at this belated stage - Held, yes [Para 15]
■■■
[2014] 48 taxmann.com 281 (SC)
SUPREME COURT OF INDIA
Union of India
v.
Pam Development (P.) Ltd.
SURINDER SINGH NIJJAR AND RANJANA PRAKASH DESAI, JJ.
CIVIL APPEAL NO. 5618 OF 2006†
FEBRUARY 18, 2014
Section 4, read with section 16 of the Arbitration and Reconciliation Act, 1996 - Waiver of right to object - Appellant entered into an agreement with respondent to construct an electric loco shed - Later, it terminated contract alleging delay on part of contracting firm and inferior quality of work - Respondent moved High Court to appoint an arbitrator - High Court appointed a retired judge as sole arbitrator who decided in favour of respondent - Appellant then moved High Court to set aside award - Court dismissed application, leading to appeal in Supreme Court - In Apex Court, appellant argued that Arbitral Tribunal was not properly constituted as appointment was against terms of contract - Whether since appellant had not raised any objection with regard to competence/jurisdiction of Arbitral Tribunal before arbitrator, same would be deemed to have been waived and could not be raised before instant Court at this belated stage - Held, yes [Para 15]
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