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2015 (5) TMI 1249 - GAUHATI HIGH COURTConstitution of Arbitrator Panel - whether another arbitrator panel should be appointed by substituting the earlier panel constituted exclusively by technical experts? - HELD THAT:- Appointment of alternate arbitrator by Court under Section 11(6) of the Arbitration Act by making a departure from the agreed procedure is permissible in deserving cases like inordinate delay in completion of arbitration proceeding and where the Arbitral Tribunal fails to perform its functions. In such events, the Court may step in to appoint substitute arbitrator by disregarding the procedure agreed by the parties. The Apex Court in the case of UNION OF INDIA (UOI) VERSUS U.P. STATE BRIDGE CORPORATION LTD. [2014 (9) TMI 1274 - SUPREME COURT] noted that the High Court can appoint substitute arbitrators if the appointed arbitrator fails to discharge his duties - Similarly in NORTH EASTERN RAILWAY VERSUS TRIPPLE ENGINEERING WORKS [2014 (8) TMI 1236 - SUPREME COURT], it was observed by the Supreme Court that in exercise of powers under Section 11(6) of the Arbitration Act, the Court can deviate from the procedure agreed by the parties to provide for effective resolution of dispute through arbitration. Thus in a deserving case when a fresh decision of the arbitrator is necessary when the previous decision was quashed by Court, the law permits appointment of new arbitrator by departing from the agreed arrangement. The want of judicial approach was the primary reason for the perverse decision by the Arbitration Tribunal, which was constituted only by retired/serving railway officers. In such circumstances, it is felt that a departure from the agreed process will improve the quality of adjudication and the decision making process in the de-novo process, necessitated by the Court quashing of the previous arbitral award. Mr. Justice H.N. Sarma, a Former Judge of this Court is nominated as the Arbitrator for resolution of the contractual dispute - case disposed off.
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