VidhiSangh

Supreme Court of India · 22/11/2018

SOUTH DELHI MUNICIPAL CORPORATION versus SMS AAMW TOLLWAYS PRIVATE LTD.

[2018] 13 S.C.R. 1120 · 2018 INSC 1089

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Summary

The Supreme Court set aside appointment of an arbitrator because the contractual dispute-resolution clause provided a departmental appeal, not arbitration. Only a dissatisfied contractor could invoke the Commissioner’s decision-making power; the mechanism did not contemplate impartial adjudication of both sides’ cases. The clause served supervisory and administrative control rather than a reference to arbitration. The High Court therefore could not appoint under Section 11(6).

Issues

  1. Whether the appeal to the Municipal Commissioner under Clause 16.3 constituted an arbitration agreement.
  2. Whether appointment under Section 11(6) could stand without the required agreement.

Provisions considered

Held

Result

Appeal allowed. High Court’s order dated 17 June 2016 appointing an arbitrator set aside.

Judgment PDF: Supreme Court of India, [2018] 13 S.C.R. 1120.