1998 (3) TMI 706 - SC - Indian Laws

Summary

Issues: International commercial arbitration, Interpretation of Section 11(9) of the Arbitration and Conciliation Act, 1996, Appointment of arbitrator, Selection of arbitrator's nationality, Remuneration of arbitrator, Venue for arbitration proceedings.

The judgment dealt with the issue of international commercial arbitration and the interpretation of Section 11(9) of the Arbitration and Conciliation Act, 1996. The parties agreed that an arbitrator with a nationality other than Indian or American should be appointed due to the nature of the dispute. Initially, efforts were made to appoint an arbitrator by consent, and Justice A.M. Ahmadi was suggested but later withdrew. The parties failed to agree on a replacement arbitrator, leading to the necessity of appointing an arbitrator in invitum. The respondent suggested the International Chamber of Commerce, Paris, while the petitioner proposed Dr. Nasim Hasan Shah, a retired Chief Justice of Pakistan, who agreed to act as an arbitrator in Delhi for a remuneration of Rs. 10,000 per day plus expenses.

The court rejected the suggestion of arbitrating in Paris due to excessive costs and appointed Dr. Nasim Hasan Shah as the arbitrator under Section 11(5) read with Section 11(9) of the Arbitration and Conciliation Act, 1996. The court directed the office to inform Dr. Shah of the appointment, allowing him to commence the arbitration proceedings promptly.

In conclusion, the judgment resolved the issue of appointing an arbitrator for an international commercial arbitration, emphasizing the necessity of selecting an arbitrator with a nationality other than that of the parties involved. The court considered the remuneration and venue for arbitration, ultimately appointing Dr. Nasim Hasan Shah as the arbitrator to conduct the proceedings in Delhi.