DELHI HIGH COURT: COURT ACQUIRES JURISDICTION UNDER SECTION 11(6) OF ARBITRATION ACT IMMEDIATELY ON DEFAULT OF PRE-ARBITRAL OF ARBITRAL PROCEDURE

The Delhi High Court in the case M/S Bksons Infrastructure Pvt. Lt Vs Managing Director, National Highways And Infrastructure Development Corporation observed and has held that court acquires jurisdiction under Section 11(6) of the Arbitration and Conciliation Act, 1996 immediately on the default, of either party, in adhering to the pre-arbitral or arbitral procedure envisaged in the contract.

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The Delhi High Court bench of Justice C. Hari Shankar was hearing the present matter.

The Section 11(6) of the Arbitration and Conciliation Act, 1996 provides that if a party fails to appoint an arbitrator, or if the two appointed arbitrators fail to agree on the third arbitrator, or if the parties or arbitrators do not agree on the procedure for appointing the arbitrator(s), a party may request the Chief Justice or a designated person or institution to appoint an arbitrator.

FACTS OF THE CASE:

The Petitioner i.e., Bksons Infrastructure Pvt. Ltd filed a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 and sought the appointment of an arbitrator to adjudicate disputes arising from an Engineering, Procurement, and Construction, EPA Contract.

The contract executed between the Petitioner and NHAI, i.e., the Respondent involved the transformation of a two-lane stretch of NH 117 into a four-lane road.

The Contract contained the arbitration clause under Article 26, which outlined the procedures for resolving disputes including attempts at amicable settlement through conciliation before resorting to arbitration.

The dispute arose between the parties which prompted the Petitioner to write to the Respondent's Managing Director stating that referring the matter to the Authority Engineer, AE would be futile, as the AE already disagreed with the Petitioner's claim in writing.