Author: admin

ISSUE:

Whether an agreement which contains an arbitration clause has or has not been novated be decided in the exercise of a limited prima facie review as to whether an arbitration agreement exists between the parties.

RULE:

The existence of an arbitration agreement presupposes a valid agreement which the Court would enforce by relegating the parties to the arbitration.

The existence of an arbitration agreement means an arbitration agreement that meets and satisfies the statutory requirements of both the Arbitration Act and the Contract Act and when it is enforceable in law.

ISSUE:

Whether or not Section 11 (6) of the Arbitration and Conciliation Act of 1996 stands forfeited when the central Government exercised its right, which is bestowed by Section 3G (5) of the National Highway Act 1956 Act, to appoint an Arbitrator?

RULE:

Being a special enactment, the National Highway Act of 1956 is a code in and of itself that lays out the acquisition process as well as the method used to determine compensation by the competent authority. Anyone who feels that the compensation set under subsections (1) or (2) of Section 3G of the Act of 1956 is unfair can certainly move to appoint an arbitrator, who the Central Government is required to name under Section 3G(5) of the Act of 1956.

ISSUE:

Whether appointing the Indian Oil Corporation's Director as Arbitrator would take away the independence and impartiality of the arbitral tribunal?

RULE:

Government contract arbitration clauses stating that an employee of the Department (often a high official unrelated to the work or the contract) will serve as the Arbitrator are valid and enforceable.

While the appointment of an employee as an arbitrator is not ipso facto a ground to raise a presumption of bias.