High Court erred in utilizing its discretionary power available under Articles 226 and 227 of the Constitution herein. Thus, the appeal is allowed.

Last updated: 23 January 2021

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The Supreme Court has allowed a civil appeal, ruling that the High Court incorrectly used its discretionary powers under Articles 226 and 227 of the Constitution. The case involved a dispute arising from a contract for the manufacture and supply of bricks, which included an arbitration clause. The appellant had sought the appointment of a sole arbitrator following disagreements over payment.

Court :
Supreme Court of India

Brief :
This Civil Appeal raises an important question of law concerning arbitration law in India and special enactments enacted by States concerning public works contract.

Citation :
Civil Appeal No. 14665 of 2015

IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 14665 OF 2015

BHAVEN CONSTRUCTION THROUGH … APPELLANT
AUTHORISED SIGNATORY PREMJIBHAI K. SHAH

VERSUS

EXECUTIVE ENGINEER SARDAR … RESPONDENTS
SAROVAR NARMADA NIGAM LTD.& ANR.

JUDGMENT

N.V. RAMANA, J.

1. This Civil Appeal raises an important question of law concerning arbitration law in India and special enactments enacted by States concerning public works contract.

2. A brief reference to facts in this case is necessary for the disposal of the case. On 13.02.1991, Respondent No. 1 entered into a contract with the Appellant to manufacture and supply bricks. The aforesaid contract had an arbitration clause. As some dispute arose regarding payment in furtherance of manufacturing and supplying of bricks, the Appellant issued
a notice dated 13.11.1998, seeking appointment of sole arbitrator in terms of the agreement. Clause 38 of the agreement provide for arbitration as under:

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