M/S.UNIVERSAL INSULATORS AND CERAMICS LTD. v. U.P.POWER CORP.LTD. AND ANR. INSC 2098

NAME OF CASE

M/S.UNIVERSAL INSULATORS AND CERAMICS LTD. V. U.P.POWER CORP.LTD. AND ANR. INSC 2098

FACTS

There were certain disputes between the appellant and the first respondent which were referred to arbitration with the second respondent acting as the arbitrator. The state government created a 5-member committee to ascertain and examine the long pending issues of the appellant. The committee made certain recommendations regarding payment which were then left to the arbitrator's discretion as held by the court of 19 .1.2004. The second respondent, i.e., the arbitrator gave an interim award on 24.1.2004, holding that the recommendations by the committee were binding on the first respondent. The first respondent being aggrieved by this decision approached the trial court for relief under sections 30 and 33 of the arbitration act wherein the trial court dismissed the appeal, upholding the arbitrator's decision and instructing the appellant to pay the said amount. The appellant subsequently approached the High Court where the interim award was set aside and the court instructed the arbitrator to decide under section 27 of the act, giving the parties a fresh opportunity.

ISSUE

Whether the decision of granting interim award by the arbitrator was valid.

HOLDING

Since the arbitrator (2nd respondent) appointed initially died during the process of deciding the case, a new arbitrator as agreed upon by both the parties was appointed, Justice Saghir Ahmed, a former Judge of this Court who is currently based in Lucknow. The appointment of the new Arbitrator has been stayed. Any conflicts between the appellant and the first respondent that were awaiting resolution by the deceased second respondent are hereby referred to Justice Saghir Ahmed, acting as the sole Arbitrator. The parties concur that the matter of an interim award is unnecessary, and the disputes will be resolved definitively. This directive will replace any prior orders concerning the appointment of an Arbitrator. The parties shall inform the court where the appointment of an Arbitrator is under consideration and seek to conclude those proceedings.

CITATION <ref> MANU/SC/8372/2008<ref>