Arbitration – Arbitral Award passed as per the arbitration notice dated 30.10.2018 was quashed under Section 34 in 2023 – Fresh notice under Section 21 is not necessary for invocation of arbitration & appointment of Arbitrator
On 30.10.2018, the petitioner invoked arbitration and appointed the Arbitrator. On 23.11.2020, the Award was passed.
The District Judge, Pune, quashed the arbitral award vide judgment dated 7.1.2023 on the ground that the Arbitrator was appointed unilaterally by the claimant.
Thereafter, the petitioner filed the section 11 application in the Bombay High Court for appointment of Arbitrator.
Preliminary Objection of Kataria that section 11(6) is pre-mature without first invoking the arbitration clause under section 21. Arbitration Clause does not contemplate “re-invocation of arbitration” and without invocation, section 11 petition is not maintainable.
HELD in para 15 of the judgment that in the sequence of events the arbitration mechanism was already triggered and the proceedings commenced on issuance of the notice dated 30.10.2018 by the petitioner to the respondent and therefore, when the petitioner now seek appointment of an independent and impartial arbitration through section 11(6), I do not deem it necessary that it should be proceeded by a fresh notice under section 21 though the respondent preferred to call it as “invocation notice” as the arbitration proceedings are already committed and the respondent is aware about the existence of a dispute and also of the fact, that this dispute in terms of the agreement between the parties deserve to be resolved through an independent arbitrator.
Judgment dated 21.3.2024 in Commercial Arbitration Petition No.16 of 2023 (Bombay High Court – Appellate Side)
