Court Directs Nomination of Former Judge as Third Arbitrator, Allows Technical Expert Assistance
In a significant ruling, the Kerala High Court, under the judgment delivered by Justice S. Manu, has resolved a prolonged arbitration dispute between Ms. Ambica Praveesh and BMH Care Hospital Ltd concerning the construction of a hospital building. The dispute centered on the appointment of a third arbitrator after conflicts arose between the parties' chosen arbitrators.
The legal tussle began when the petitioner, Ambica Praveesh, invoked the arbitration clause in their contract due to unresolved issues with the hospital's construction. The arbitration clause allowed each party to nominate an arbitrator, who would then mutually decide on a third arbitrator to preside over proceedings. However, disagreements emerged regarding the qualifications of the third arbitrator, leading to the matter being brought before the Kerala High Court.
The petitioner argued for a technically proficient arbitrator, given the nature of disputes, while the respondent advocated for a retired judge, emphasizing the legal complexities involved. Justice S. Manu, in his judgment, emphasized that there is no legal requirement for the presiding arbitrator to be a retired Chief Justice or Judge even if one arbitrator holds such a position. The court underscored the autonomy of the arbitral tribunal to seek expert assistance in resolving technical disputes.
The court directed the Kerala High Court Arbitration Centre to nominate a former judge from Panel I as the third arbitrator. It also allowed the tribunal the liberty to seek technical expertise if needed. This decision aims to ensure that both legal and technical aspects of the dispute are adequately addressed.
Legal experts view this ruling as reinforcing the flexibility within arbitration proceedings, allowing tribunals to incorporate external expertise to resolve complex disputes effectively. The judgment sets a precedent for balancing legal and technical considerations in arbitration, particularly in construction-related cases.
Bottom line:-
Arbitration - Appointment of third arbitrator - No legal requirement that the presiding arbitrator must be a retired Chief Justice or retired Judge if one arbitrator is a retired Chief Justice. Tribunal may seek assistance of experts for technical disputes.
Statutory provision(s): Arbitration and Conciliation Act, 1996 Section 29(1) and (2), Section 11(6)
Ms. Ambica Praveesh v. BMH Care Hospital Ltd, (Kerala) : Law Finder Doc id # 2923706
