Arbitration tribunal able to recall termination order

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2018
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The Supreme Court recently decided on an arbitral tribunal’s ability to recall its order terminating arbitration proceedings on account of non-filing of claim by the claimant.

In SREI Infrastructure Finance Limited v Tuff Drilling Private Limited, Tuff filed an application under section 11 of the Arbitration and Conciliation Act, 1996, before Calcutta High Court for referring the dispute to an arbitrator on the strength of a contract entered with SREI. A one-man arbitral tribunal subsequently entered into reference and called for the first sitting on 27 August 2011. The arbitral tribunal directed Tuff to file statement of claim by 9 December 2011 after its absence the month before. It terminated the claim under section 25(a) of the arbitration act after Tuff failed to meet that deadline as well.

Tuff filed an application on 20 January 2012 and sought a recall of the order and a further extension, which SREI objected to on the ground that the tribunal’s mandate had expired. The arbitral tribunal heard both the parties and on 26 April 2012 accepted the preliminary objections of SREI. However, Calcutta High Court on hearing the writ petition against the tribunal’s order, held that the arbitral tribunal had the power to recall its own order and remitted the matter back to the arbitral tribunal to decide Tuff’s application on its merits.

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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.

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