Summary
The Court held that section 11 of the Arbitration and Conciliation Act could not be used to appoint an arbitrator for a national-highway compensation dispute because section 3G(5) of the National Highways Act vested that power exclusively in the Central Government. Delay did not transfer the appointment power to the High Court. Setting aside the appointment and review orders, the Court directed a Central Government appointment within 30 days and expedited adjudication.
Issues
- Whether section 11 appointment jurisdiction applied to compensation arbitration under section 3G(5) of the National Highways Act.
- Whether delay in appointment forfeited the Central Government’s power and what remedy was available.
Provisions considered
- Section 3G(5)–(6), National Highways Act, 1956The special statutory appointment mechanism prevailed; application of the Arbitration Act was expressly subject to the National Highways Act and did not extend section 11 to appointments. (¶¶ 4, 15–24)
Held
- The National Highways Act supplied a special, self-contained mechanism for compensation arbitration. Section 3G(6) permitted recourse to the Arbitration Act where the special Act was silent, but appointment remained exclusively with the Central Government under section 3G(5). The section 11 application was not maintainable. (¶ 15–23)
- Section 3G(5) prescribed no statutory appointment deadline, but the power had to be exercised within a reasonable time. A party could seek relief through writ jurisdiction or a civil court for failure to perform the statutory duty; delay did not confer section 11 jurisdiction or cause the asserted forfeiture. (¶ 24)
- Given the prolonged litigation, no fresh application was necessary. The Central Government was directed to appoint within 30 days with prior intimation to the respondents; the arbitrator should decide within a reasonable time, no later than six months after the applicant entered appearance. (¶ 25–27)
Result
Appeals allowed without costs; High Court appointment and review orders set aside. Central Government to appoint under section 3G(5) within 30 days without a fresh application; adjudication within six months after the applicant enters appearance. Compensation quantum not decided.