New Arbitrator – appointment – If Section 11(5) or Section 14 of AA applies?
Initially, the appointment of arbitrator by the petitioner was objected to by the respondent on the ground of unilateral appointment. The Arbitrator denied the request. The respondent moved the High Court for termination of Arbitrator’s mandate under Section 14 of the AA.
On 22.2.2022, the High Court had appointed other two arbitrators.
Thereafter, one of the Arbitrators was elevated to the Bench and another relocated outside India. The Arbitrators were unable to perform their duties under Section 14(1)(a) of the AA.
The Petitioner filed petition under Sections 14 and 15 of the AA for termination of mandate of earlier Arbitrators and appointment of a new arbitral tribunal.
HELD, on consideration of interplay of sections 11, 14 and 15 as also the Rules, the Party autonomy takes back-seat once the Court intervenes in the matter of initial appointment and the arbitration is set in motion, the parties must revert to the Court in subsequent interruptions in that process. Thee is no statutory basis to send the parties back to the procedure of Section 11(5) of AA.
AP Nos.281 and 293 of 2023 decided on 11.5.2023 (Original Side-Commercial Division) Srei Equipment Finance Limited Vs. Seirra Infraventure Private Limited (High Court of Calcutta)