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B.K.GUPTA... (ADVISOR)     18 June 2012

Supreme court judgment-arbitration

 

 

  The Supreme Court in a recent judgment delivered on June 11,2012 in a
SLP filed by ACC Limited:
 
"We  have  carefully  gone  through  the  arbitration  clause  in  the
Agreement dated 16.12.1989 and, in our view, the words “at any  time”  which
appear  in  Clause  21,  is  of  considerable  importance.   “At  any  time”
expresses a time when an event takes place expressing a particular state  or
condition that is when the dispute or difference arises.    The  arbitration
clause 21 has no nexus with the life time  of  the  named  arbitrator.   The
expression “at any time” used in the arbitration clause has  nexus  only  to
the time frame within which the question or  dispute  or  difference  arises
between the parties be resolved.  Those disputes and  differences  could  be
resolved during the life time of the named arbitrators or beyond their  life
time.  The incident of the death of the named arbitrators has  no  nexus  or
linkage with the  expression  “at  any  time”  used  in  clause  21  of  the
Agreement.  The time factor mentioned therein is the time within  which  the
question or dispute or difference between the parties  is  resolved  as  per
the Agreement.  Arbitration clause would have life -
 
so long as any question or dispute or difference between the parties  exists
unless the language of the clause clearly  expresses  an  intention  to  the
contrary.  The question may also arise  in  a  given  case  that  the  named
arbitrators may refuse to arbitrate disputes, in such a situation  also,  it
is possible for the parties to appoint a substitute  arbitrator  unless  the
clause provides to the contrary.  Objection can be  raised  by  the  parties
only if there is a clear prohibition or debarment in resolving the  question
or dispute or difference between the parties in case of death of  the  named
arbitrator or their non-availability, by a substitute arbitrator."


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