Case Law Details
UOI Vs Aps Structures Pvt. Ltd (Delhi High Court)
It is well settled that recourse to Section 14 of the A&C Act is not available in respect of any challenge to the arbitrator under Section 12(1) of the A&C Act. Such a recourse is permissible only in the event the arbitrator is ineligible by virtue of Section 12(5) of the A&C Act. Concededly, none of the circumstances as specified in the Seventh Schedule exist in the present case. Thus, per se, the learned Arbitrator cannot be held to be ineligible under Section 12(5) of the A&C Act to act as an arbitrator.
A challenge to the appointment of an arbitrator, other than on the ground of ineligibility as specified under Section 12(5) of the A&C Act, is required to be made as per the procedure set out in Section 13 of the A&C Act. Failing any agreement between the parties, such a challenge is to be made in the first instance before the arbitral tribunal. If the learned arbitrator does not recuse from the proceedings, he is required to pass an order in respect of the challenge and if the arbitrator rejects the challenge, he has to proceed to make an award. In terms of Section 13(5) of the A&C Act, the party challenging the arbitrator may challenge the arbitral award under Section 34 of the A&C Act. However, it is not open for the party to seek recourse to this Court in this regard prior to the delivery of the award [See: Progressive Career Academy Pvt. Ltd. v FIITJEE Ltd: 2011 SCC OnLine Del 2271].
In HRD Corporation (Marcus Oil and Chemical Division) v. GAIL (India) Limited: (2018) 12 SCC 471, the Supreme Court had drawn the distinction regarding the remedies available to challenge an arbitrator on the grounds as set out in Section 12(1) of the A&C Act and on the ground of ineligibility as set out in Section 12(5) of the A&C Act.
In view of the above, this Court is unable to accept that the present petition is maintainable. The same is, accordingly, dismissed.
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