Consent Orders for Arbitration Reviewed Due to Jurisdictional Conflicts with AAI Act
In a significant development, the Bombay High Court has ordered a fresh review of consent orders that appointed an Arbitral Tribunal to resolve disputes involving the Airports Authority of India (AAI) and several other parties. The review was necessitated by potential conflicts between the consent orders and statutory provisions under the Airports Authority of India Act, 1994.
Justice Somasekhar Sundaresan presided over the matter, focusing on whether the disputes, primarily concerning the eviction of unauthorized occupants from airport premises, were indeed arbitrable under the existing legal framework. The AAI had previously consented to arbitration, but later contended that such consent contradicted statutory provisions, specifically Chapter VA of the AAI Act, which governs eviction procedures.
The court acknowledged the AAI's argument that the disputes involved statutory ouster of jurisdiction under Section 28M of the AAI Act, rendering them non-arbitrable. Consequently, the Section 9 petitions under the Arbitration and Conciliation Act, 1996, which led to the formation of the Arbitral Tribunal, were restored for fresh consideration on merits and jurisdiction by the appropriate Bench.
The judgment emphasized that while parties can agree to arbitration, such consent cannot override statutory bars. The court clarified that the restoration of petitions is not a judgment on the arbitrability of the disputes but allows the Section 9 Court to reconsider the jurisdictional objections.
Pending the fresh consideration, the AAI has committed to maintaining the status quo, refraining from acting on termination notices related to the disputes. The court's decision ensures that the disputes will be thoroughly examined in light of the statutory provisions, providing clarity on the jurisdictional scope of arbitration in such matters.
Bottom Line:
Arbitration and Conciliation Act, 1996 - Review of consent orders passed under Section 9 - Consent granted by Airports Authority of India for arbitration potentially conflicting with statutory provisions under Chapter VA of the Airports Authority of India Act, 1994 - Restoration of Section 9 Petitions for reconsideration on merits and jurisdiction by the appropriate Bench.
Statutory provision(s): Arbitration and Conciliation Act, 1996 Section 9, Section 16, Airports Authority of India Act, 1994 Sections 28A, 28B, 28M
Airports Authority of India v. Satyavan Vishnu Agate, (Bombay) : Law Finder Doc id # 2884044
