1999 (5) TMI 536 - SC - Companies Law

Application under section 11 of the Arbitration and Conciliation Act 1996 for the appointment of an arbitrator - Held that - The present proceedings however for the appointment of an arbitrator under section 11 of the Arbitration and Conciliation Act have a very narrow scope and the same are not covered by section 22 of the Sick Industrial Companies (Special Provisions) Act. If however the respondents desire that the arbitration proceedings should not be proceeded with it is open to them to take appropriate legal steps in that connection under the provisions of the Act and in accordance with law. In the premises by consent of both parties Justice S. Ranganathan retired judge of the Supreme Court of India is appointed as sole arbitrator as prayed for in the arbitration petition.

Summary

The Supreme Court of India overruled an objection and appointed Justice S. Ranganathan as the sole arbitrator in an application under section 11 of the Arbitration and Conciliation Act, 1996. The appointment was made under the Chief Justice of India Scheme, 1996, despite the respondent-company being declared a sick industrial company under the Sick Industrial Companies (Special Provisions) Act, 1985. The court clarified that the arbitration proceedings were not covered by the provisions of the Sick Industrial Companies Act.