VidhiSangh

Supreme Court of India · 16/05/2024

DANI WOOLTEX CORPORATION & ORS. versus SHEIL PROPERTIES PVT. LTD. & ANR.

[2024] 6 S.C.R. 761 · 2024 INSC 433

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

A claimant’s failure to seek hearing dates did not establish abandonment or justify terminating arbitration under Section 32(2)(c). The tribunal itself must schedule and adjudicate the reference, using the statutory default provisions where appropriate. Abandonment requires express conduct or compelling facts permitting only that inference; neither existed here. The High Court’s interference was upheld, with parties directed to secure a substitute after the arbitrator withdrew.

Issues

  1. When Section 32(2)(c) permits termination for unnecessary or impossible continuation.
  2. Whether prolonged inaction or absence alone establishes abandonment.
  3. Whether an arbitrator’s withdrawal terminates the underlying proceedings.

Provisions considered

Held

Result

Appeal dismissed; High Court’s reversal of arbitral termination upheld. Parties to secure a substitute arbitrator according to law following withdrawal. No costs.

Judgment PDF: Supreme Court of India, [2024] 6 S.C.R. 761.