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Head Note

The Arbitration and Conciliation Act, 1996  - Section 11 (4) ,  (6) , Section 15

Appointment of arbitrator - Principles of natural justice - No one can be a judge in his own cause - Government contract - Appointment of Government servant as arbitrator by DGOF as per arbitration clause - Objections raised - Principal District Court terminated his mandate as he failed to act fairly - However, directions given to DGOF to act as an arbitrator or to appoint any Government servant as an arbitrator - Whether DGOF can act as an arbitrator as he is likely to be biased being a government servant - Relying upon Indian Oil Corporation's case, held, that parties having initially agreed to appointment of a government servant as arbitrator, cannot later plead violation of natural justice - Arbitration agreements in government contracts providing for appointment of a government servant as arbitrator, are neither void nor unenforceable as usually senior officers are appointed who are presumed to be impartial.

The Arbitration and Conciliation Act, 1996  - Section 11 (4) ,  (6) , Section 15

Government contract - Disputes arose - DGOF appointed one 'A' as an arbitrator as per arbitration clause 19(F) - Petitioner raised objections due to apprehension of bias - Yet, arbitration proceedings continued - Application filed before Principal District Court, whereupon, mandate of the Arbitrator terminated after observing that he failed to act fairly - In accordance with Section 15(2), Court directed DGOF to act as an arbitrator or to appoint a Government servant as an arbitrator - Admittedly, DGOF neither acted as an arbitrator, nor appointed any government servant within 30 days from the date of order - Petitioner filed a petition on 2.3.2024 for appointment of arbitrator - Subsequently respondent appointed one 'S' as arbitrator on 16.3.2024 - Whether DGOF, having failed to appoint an arbitrator within 30 days from the date of order, respondent forfeited its right to appoint an arbitrator - Held, yes - By then Respondent had lost its right to appoint an arbitrator - Datar Switchgears Ltd.'s case applicable. Punj Lloyd Ltd.'s case referred.

Topic(s)-Appointment of arbitrator , Principles of natural justice , Appointment of Government servant as arbitrator

Important Decision(s)- Govt. contract - Appointment of Govt. servant as arbitrator - Relying upon Indian Oil Corporation's case - Neither void nor unenforceable.