Application to Appoint Arbitrator under Section 11 of the Arbitration and Conciliation Act 1996 cannot be maintained: SC

The moot question before the Supreme Court of India in this dispute was whether the application under Section 11 of the Arbitration and Conciliation Act, 1996 (A & C Act) is maintainable in view of Section 3G(5) of the National Highways Act, 1956 (NHA) which provides for appointment of an Arbitrator by the Central Government.

The appellant in this case – National Highways Authority of India moved the Supreme Court aggrieved by the decision of the Calcutta High Court.

The Supreme Court set aside the decision of the Calcutta High Court and held that “Section 11 of the A & C Act has no application and the power is exclusively vested with the Central Government under Section 3G(5) of the NHA for appointment of an Arbitrator and if the Central Government does not appoint an Arbitrator within a reasonable time, it is open for the party to avail the remedy either by filing a writ petition under Article 226 of the Constitution of India or a suit for the purpose but the remedy of Section 11 of A & C Act is not available for appointment of an Arbitrator.”

The Apex Court ruled that so far as the appointment of an Arbitrator is concerned, the power being exclusively vested with the Central Government as envisaged under Section 3G(5) NHA, Section 11 of the A & C Act has no application.

A Bench of Justices N.V. Ramana, Mohan M. Shantanagoudar and Ajay Rastogi presided over the case.

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