Summary
The Supreme Court replaced an arbitral tribunal that had not delivered an award after more than four years. The Principal Secretary appointed by a State nodal agency was ineligible because of his controlling influence over that party. With both parties’ consent, a retired Supreme Court judge was appointed sole substitute arbitrator to continue from the stage reached and conclude within six months. The Court fixed statutory-schedule fees to be shared equally.
Issues
- Whether the State official nominated to the tribunal was eligible and how the prolonged arbitration should proceed.
Provisions considered
- Section 12(5), read with Seventh Schedule, item 5, Arbitration and Conciliation Act, 1996The Principal Secretary’s controlling influence over the State nodal agency made him ineligible on the facts. The Court did not treat the original nomination agreement as sufficient to overcome statutory ineligibility. (¶ 17)
- Section 29A(6), Arbitration and Conciliation Act, 1996With the parties’ consent, the Court substituted a sole arbitrator and directed continuation from the existing stage and record, rather than a fresh arbitration. (¶ 18)
Held
- Despite the tribunal’s statements that the award was ready, more than four years had passed without its delivery. The Court addressed both delay and the nominee’s statutory ineligibility. (¶¶ 16, 17)
- The Principal Secretary could exercise controlling influence over HARSAC as a government nodal agency, bringing his appointment within the relevant Seventh Schedule category. (¶ 17)
- Justice Kurian Joseph was appointed sole substitute arbitrator, subject to independence, impartiality and availability declarations. He could hear final arguments and review the record, and was to deliver the award within six months of receiving the order. (¶ 18)
- Fees were to follow the Fourth Schedule and be borne equally. Proceedings could be virtual or at the seat in Haryana. The underlying contractual dispute remained for arbitration. (¶ 18)
Result
Matter disposed of by substituting a sole arbitrator with the parties’ consent and issuing directions for continuation, completion within six months and shared fees.