01 September 2021, Wednesday

3 years ago

The remedy to challenge the constitution of the fresh tribunal is not Section 15 ACA: Bombay High Court

01 September 2021 | JMC Metals Pvt. Ltd. v. Kunvarji Commodities Brokers Pvt. Ltd. | Commercial Arbitration Petition (Lodging) No. 5885 of 2021 | AK Menon J | High Court of Bombay | 2021 SCC OnLine Bom 2588

The case concerned arbitration under the bye laws of a stock exchange. The mandate of the previous tribunal was terminated because the reference could not be completed in time. The constitution of a new tribunal was challenged under Section 14 ACA. The court concluded the tribunal freshly constituted had jurisdiction. The question of whether, under Byelaw 15.32 and the automatic selection process, a new tribunal could have been appointed by the Exchange is not a matter that can be decided under Section 14 ACA. Also, under Section 15 ACA, a substitute arbitrator could be appointed following “rules” that were applicable to the appointment of the arbitrator being replaced. This is what was done.

So, the remedy is not petition under Section 14 and 15 ACA. A challenge could be made under Section 12 ACA (if the grounds applied).

Read the decision here.

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