JRE Infra Private Limited Vs Deendayal Port Authority (
The Supreme Court of India disposed of the Special Leave Petition filed in JRE Infra Private Limited Vs Deendayal Port Authority after the arbitrator whose appointment was challenged withdrew from the arbitral proceedings. The dispute arose from the Gujarat High Court’s judgment dated 10 November 2023, which had dismissed a petition under Section 12(5) of the Arbitration and Conciliation Act, 1996. The petitioner had questioned the eligibility of an arbitrator nominated by the respondent because he had previously acted as a High Court judge in judicial proceedings at the interim stage concerning the same parties and arbitration. The petitioner maintained that this previous involvement disqualified him from acting as an arbitrator.
The Gujarat High Court had rejected the challenge, holding that earlier involvement in a judicial capacity did not establish statutory ineligibility under Section 12(5) read with Item 16 of the Seventh Schedule. However, during the subsequent Supreme Court proceedings, the challenged arbitrator withdrew from the arbitral proceedings. The Supreme Court consequently held that the cause pursued in the Special Leave Petition no longer survived. It set aside the Gujarat High Court’s order dated 10 November 2023, disposed of the Special Leave Petition and also disposed of pending applications. The Supreme Court did not independently determine the substantive question of arbitrator eligibility or deliver a ruling on the interpretation of Section 12(5). Its order was based on the subsequent withdrawal of the arbitrator.
Related Gujarat High Court Judgment: The Gujarat High Court had earlier rejected the challenge to the arbitrator’s appointment, holding that his previous involvement in a judicial capacity did not establish ineligibility under Section 12(5) read with Item 16 of the Seventh Schedule. That order was subsequently set aside by the Supreme Court following the arbitrator’s withdrawal, without a ruling on the substantive eligibility issue. Read: Earlier Judicial Role Does Not Disqualify Nominated Arbitrator: Gujarat HC.
Cases Discussed in the Accompanying Gujarat High Court Judgment
- Perkins Eastman Architects DPC and Another v. HSCC (India) Ltd., (2020) 20 SCC 760 — arbitrator independence and impartiality.
- Voestalpine Schienen GmbH v. Delhi Metro Rail Corporation Ltd., (2017) 4 SCC 665 — arbitrator neutrality.
- HRD Corporation (Marcus Oil and Chemical Division) v. GAIL (India) Ltd., (2018) 12 SCC 471 — previous involvement and statutory ineligibility.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
1. The Gujarat High Court, by its impugned order dated 10 November 2023, dismissed a petition under Section 12(5) of the Arbitration and Conciliation Act 1996.
2. The petitioner had objected to the arbitrator nominated by the respondent on the ground that he had previously acted as a Judge at the interim stage in a matter arising between the same parties pertaining to the same arbitration.
3. During the course of these proceedings, the arbitrator, in respect of whom an objection was raised, has withdrawn from the arbitral proceedings.
4. In this view of the matter, the cause which was sought to be espoused in these proceedings will not survive.
5. The impugned order of the Gujarat High Court dated 10 November 2023 shall accordingly stand set aside.
6. The Special Leave Petition is disposed of.
7. Pending applications, if any, stand disposed of.
1. The Gujarat High Court, by its impugned order dated 10 November 2023, dismissed a petition under Section 12(5) of the Arbitration and Conciliation Act 1996.
2. The petitioner had objected to the arbitrator nominated by the respondent on the ground that he had previously acted as a Judge at the interim stage in a matter arising between the same parties pertaining to the same arbitration.
3. During the course of these proceedings, the arbitrator, in respect of whom an objection was raised, has withdrawn from the arbitral proceedings.
4. In this view of the matter, the cause which was sought to be espoused in these proceedings will not survive.
5. The impugned order of the Gujarat High Court dated 10 November 2023 shall accordingly stand set aside.
6. The Special Leave Petition is disposed of.
7. Pending applications, if any, stand disposed of.
