No legal presumption on abandonment of arbitration claim
Judgment dated 3.7.2023 of the High Court of Bombay
Arbitration proceedings – Termination under section 32(2)(c) of the Arbitration and Conciliation Act, 1996, on abandonment of claim – Important issue that there is no legal presumption of abandonment and duty of the Arbitrator is to conclude the proceedings
In the arbitration proceedings between the parties, two statement of claims were filed before the Arbitrator.
On 24.1.2012, the petitioner Sheil Company filed the claim and also application under section 17 of the Arbitration Act for interim measures.
Respondent No.6 Marico filed another statement of claim which was resulted in the Award passed on 6.5.2017.
The arbitration proceedings in respect of the petitioner’s claim had remained dormant from 2021 to 2017.
On 27.8.2020, respondent no.1 filed an application under Section 32(2)(c) of AA for termination of arbitration proceedings of the petitioner on the ground that it had abandoned the claim since no steps were taken.
On 1.12.2020, the Arbitrator passed the impugned order terminating the arbitration proceedings of the petitioner on the ground that its continuance has become unnecessary and impossible.
HELD that there can be no legal presumption about factum of abandonment of proceedings, it has to be expressed, the petitioner did not abandon its claim, there was no reason for termination of arbitral proceedings and the Tribunal ought to have concluded the proceedings in the event that they became unnecessary in the background of Marico award. The petition was allowed.
Sheil Properties Private Limited Vs. Dani Wooltex Corporation and others Arbitration Petition No.472 of 2021
