{"id":127489,"date":"2007-08-13T00:00:00","date_gmt":"2007-08-12T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/asian-thermal-insulation-i-p-vs-bridge-roof-co-i-ltd-on-13-august-2007"},"modified":"2016-06-29T13:03:12","modified_gmt":"2016-06-29T07:33:12","slug":"asian-thermal-insulation-i-p-vs-bridge-roof-co-i-ltd-on-13-august-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/asian-thermal-insulation-i-p-vs-bridge-roof-co-i-ltd-on-13-august-2007","title":{"rendered":"Asian Thermal Insulation (I) P. &#8230; vs Bridge &amp; Roof Co. (I) Ltd on 13 August, 2007"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Asian Thermal Insulation (I) P. &#8230; vs Bridge &amp; Roof Co. (I) Ltd on 13 August, 2007<\/div>\n<div class=\"doc_author\">Author: . A Pasayat<\/div>\n<div class=\"doc_bench\">Bench: Dr. Arijit Pasayat, C.K. Thakker, Lokeshwar Singh Panta<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  3696 of 2007\n\nPETITIONER:\nAsian Thermal Insulation (I) P. Ltd\n\nRESPONDENT:\nBridge &amp; Roof Co. (I) Ltd\n\nDATE OF JUDGMENT: 13\/08\/2007\n\nBENCH:\nDr. ARIJIT PASAYAT &amp; C.K. THAKKER &amp; LOKESHWAR SINGH PANTA\n\nJUDGMENT:\n<\/pre>\n<p>J U D G M E N T<\/p>\n<p>CIVIL APPEAL NO.  3696           OF 2007<br \/>\n(Arising out of SLP (C) No. 49 of 2006)<\/p>\n<p>Dr. ARIJIT PASAYAT, J.\n<\/p>\n<p>1.\tLeave granted.\n<\/p>\n<p>2.\tControversy lies within a very narrow compass.\n<\/p>\n<p>3.\tThe factual background as projected by the appellant is<br \/>\nas follows:\n<\/p>\n<p>\tOn 22.12.2003 work order was issued by the respondent<br \/>\nto the appellant. There was a clause for arbitration in the<br \/>\nagreement which was to the following effect:\n<\/p>\n<p>&#8220;41.\tARBITRATION<br \/>\nB&amp;R confidently feel that there shall not<br \/>\narise any disputes or differences during<br \/>\nexecution and completion of this order by<br \/>\nthe Contractor.\n<\/p>\n<p>However, in the event of any<br \/>\ndisputes or differences arise between<br \/>\nCompany (B&amp;R) and Contractor<br \/>\n(hereinafter called the said parties)<br \/>\ntouching or concerning the interpretation<br \/>\nof the terms and conditions as<br \/>\nperformance of the order or in connection<br \/>\ntherewith or the rights and liabilities of<br \/>\neither of the said parties hereto, the said<br \/>\nparties shall endeavour to settle the same<br \/>\namicably through mutual agreement<br \/>\nbetween them, but if the mutual<br \/>\nsettlement is not possible between the<br \/>\nCompany and the Contractor, the<br \/>\nprovisions of the Indian Arbitration &amp;<br \/>\nConciliation Act, 1996 and all statutory<br \/>\nre-enactment and modifications thereof<br \/>\nand the rules made thereunder shall<br \/>\napply to such arbitrations.&#8221;\n<\/p>\n<p>4.\tOn 27.11.2004 a notice of demand was sent to the site of<br \/>\nthe respondent and it was returned with the postal<br \/>\nendorsement &#8220;refused&#8221;. On 30.6.2005 the request was<br \/>\nreiterated. On 9.8.2005 an order was passed by the High<br \/>\nCourt on the application filed by the respondent.  The matter<br \/>\nwas directed to be placed before the Chief Justice of the High<br \/>\nCourt for naming an arbitrator. On 19.9.2005 the High Court<br \/>\nrefused to recall its order dated 9.8.2005 on the appellant&#8217;s<br \/>\npetition. On 26.10.2005, this Court in SBP &amp; Co. v. Patel<br \/>\nEngineering Ltd. &amp; Anr. [2005 (8) SCC 618] has dealt with the<br \/>\nnature of power exercised by the Chief Justice of High Court<br \/>\nor Chief Justice of India, as the case may be, under the<br \/>\nArbitration and Conciliation Act, 1996 (in short the<br \/>\n&#8216;Arbitration Act&#8217;) and held that same is a judicial power and<br \/>\nnot an administrative power. The decision in <a href=\"\/doc\/1752565\/\">Konkan Rly.<br \/>\nCorpn. Ltd. v. Rani Construction (P) Ltd.<\/a> (2002 (2) SCC 388)<br \/>\nwas overruled in SBP &amp; Co. (supra). The conclusions per<br \/>\nmajority were as follows:\n<\/p>\n<p>&#8220;47. We, therefore, sum up our conclusions as<br \/>\nfollows:\n<\/p>\n<p>(i)\tThe power exercised by the Chief Justice<br \/>\nof the High Court or the Chief Justice of<br \/>\nIndia under Section 11(6) of the Act is not<br \/>\nan administrative power. It is a judicial<br \/>\npower.\n<\/p>\n<p>(ii)\tThe power under Section 11(6) of the Act,<br \/>\nin its entirety, could be delegated, by the<br \/>\nChief Justice of the High Court only to<br \/>\nanother Judge of that Court and by the<br \/>\nChief Justice of India to another Judge of<br \/>\nthe Supreme Court.\n<\/p>\n<p>(iii)\tIn case of designation of a Judge of the<br \/>\nHigh Court or of the Supreme Court, the<br \/>\npower that is exercised by the designated<br \/>\nJudge would be that of the Chief Justice<br \/>\nas conferred by the statute.\n<\/p>\n<p>(iv)  The Chief Justice or the designated Judge<br \/>\nwill have the right to decide the<br \/>\npreliminary aspects as indicated in the<br \/>\nearlier part of this judgment. These will<br \/>\nbe his own jurisdiction to entertain the<br \/>\nrequest, the existence of a valid<br \/>\narbitration agreement, the existence or<br \/>\notherwise of a live claim, the existence of<br \/>\nthe condition for the exercise of his power<br \/>\nand on the qualifications of the arbitrator<br \/>\nor arbitrators. The Chief Justice or the<br \/>\ndesignated Judge would be entitled to<br \/>\nseek the opinion of an institution in the<br \/>\nmatter of nominating an arbitrator<br \/>\nqualified in terms of Section 11(8) of the<br \/>\nAct if the need arises but the order<br \/>\nappointing the arbitrator could only be<br \/>\nthat of the Chief Justice or the designated<br \/>\nJudge.\n<\/p>\n<p>(v)\tDesignation of a District Judge as the<br \/>\nauthority under Section 11(6) of the Act<br \/>\nby the Chief Justice of the High Court is<br \/>\nnot warranted on the scheme of the Act.\n<\/p>\n<p>(vi)\tOnce the matter reaches the Arbitral<br \/>\nTribunal or the sole arbitrator, the High<br \/>\nCourt would not interfere with the orders<br \/>\npassed by the arbitrator or the Arbitral<br \/>\nTribunal during the course of the<br \/>\narbitration proceedings and the parties<br \/>\ncould approach the Court only in terms of<br \/>\nSection 37 of the Act or in terms of<br \/>\nSection 34 of the Act.\n<\/p>\n<p>(vii)\tSince an order passed by the Chief<br \/>\nJustice of the High Court or by the<br \/>\ndesignated Judge of that Court is a<br \/>\njudicial order, an appeal will lie against<br \/>\nthat order only under Article 136 of the<br \/>\nConstitution to the Supreme Court.\n<\/p>\n<p>(viii)\tThere can be no appeal against an order<br \/>\nof the Chief Justice of India or a Judge of<br \/>\nthe Supreme Court designated by him<br \/>\nwhile entertaining an application under<br \/>\nSection 11(6) of the Act.\n<\/p>\n<p>(ix)  In a case where an Arbitral Tribunal has<br \/>\nbeen constituted by the parties without<br \/>\nhaving recourse to Section 11(6) of the<br \/>\nAct, the Arbitral Tribunal will have the<br \/>\njurisdiction to decide all matters as<br \/>\ncontemplated by Section 16 of the Act.\n<\/p>\n<p>(x)  Since all were guided by the decision of<br \/>\nthis Court in <a href=\"\/doc\/1752565\/\">Konkan Rly. Corpn. Ltd. v.<br \/>\nRani Construction (P) Ltd. and<\/a> orders<br \/>\nunder Section 11(6) of the Act have been<br \/>\nmade based on the position adopted in<br \/>\nthat decision, we clarify that<br \/>\nappointments of arbitrators or Arbitral<br \/>\nTribunals thus far made, are to be<br \/>\ntreated as valid, all objections being left<br \/>\nto be  decided under Section 16 of the<br \/>\nAct. As and from this date, the position<br \/>\nas adopted in this judgment will govern<br \/>\neven pending applications under Section<br \/>\n11(6) of the Act.\n<\/p>\n<p>(xi)\tWhere District Judges had been<br \/>\ndesignated by the Chief Justice of the<br \/>\nHigh Court under Section 11(6) of the<br \/>\nAct, the appointment orders thus far<br \/>\nmade by them will be treated as valid; but<br \/>\napplications if any pending before them<br \/>\nas on this date will stand transferred, to<br \/>\nbe dealt with by the Chief Justice of the<br \/>\nHigh Court concerned or a Judge of that<br \/>\nCourt designated by the Chief Justice.\n<\/p>\n<p>(xii)  The decision in Konkan Rly. Corpn. Ltd.<br \/>\nv. Rani construction (P) Ltd. is overruled&#8221;.\n<\/p>\n<p>5.\tThough arguments were advanced in support of the<br \/>\nrespective stand about the legality of the impugned order, it<br \/>\nwas agreed to by learned counsel for the parties that following<br \/>\narrangement can be made.\n<\/p>\n<p>&#8220;The appellant has nominated one Sri J.<br \/>\nChawla to be its arbitrator. Within a period of<br \/>\n30 days the respondent shall nominate its<br \/>\narbitrator.  Thereafter the Chief Justice of the<br \/>\nHigh Court shall nominate the Presiding<br \/>\nArbitrator who shall be a retired Judge of any<br \/>\nHigh Court.&#8221;\n<\/p>\n<p>7.\tAppeal is accordingly disposed of with no order as to<br \/>\ncosts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Asian Thermal Insulation (I) P. &#8230; vs Bridge &amp; Roof Co. (I) Ltd on 13 August, 2007 Author: . A Pasayat Bench: Dr. Arijit Pasayat, C.K. Thakker, Lokeshwar Singh Panta CASE NO.: Appeal (civil) 3696 of 2007 PETITIONER: Asian Thermal Insulation (I) P. Ltd RESPONDENT: Bridge &amp; Roof Co. (I) Ltd [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-127489","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Asian Thermal Insulation (I) P. ... vs Bridge &amp; Roof Co. 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