Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Thursday, June 20, 2019 10:13:07 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Section 11 (6) of the Arbitration Act

Order of the Designated Judge cannot be Challenged

By
18th-May-2019       
Comments
Share your thought
Post a comment »
Read all () »

High Court Division :
(Special Original Jurisdiction)
Borhanuddin    J     } Bangladesh Water                                                                                                                                                                                     
Sardar Md Rashed } Development Board
   Jahangir        J     }…………..Petitioner
                               }           VS
Judgment              } Additional District
July 23rd, 2018     } Judge 6th Court,
                   } Chittagong and another
                   }.............. Respondents.

Arbitration Act (1 of 2001)
Section 12 (4)
Neither the law nor the contract agreement prescribes any qualification that the arbitrator has to be a different person depending on the nature of the dispute rather from the provision of law it appears that Court has unfettered discretion under Sub-section (4) of Section 12 of the Act in the matter of appointment of an arbitrator after hearing the parties.. .. .... (12)
Panchu Gopal Bose vs Board of Trustees for Port of Calcutta, (1993) 4 SCC 338; Union of India vs DP Singh, AIR 1961 (Patna) 228; You One Engineering and Construction Co. Ltd VS National Highways Authority of India, AIR (2006) SC 3453; Executive Engineer, Prachi Division, Bhubaneswar vs Gangaram Chapolia, AIR 1980 (Orissa) 51; Nagendra Nath Chakrobarty vs State of West Bengal, AJR1987 (Cal) 199 and State of Orissa vs Gokulananda Jena, AIR (2003) SC 4207 ref.
Arobinda Kumar Roy, Advocate-For the Petitioner.
Kamal-ul-Alam with Md Masud Alam Advocates-For the Respondent No. 2
Judgment
Borhanuddin J : The rule nisi has been issued calling upon the respondents to show cause as to why the order dated 6-4-2016 passed by the learned Additional District Judge, 6th Court, Chittagong, in Arbitration Miscellaneous Case No.1 of 2014 allowing the Miscellaneous Case and appointing third Arbitrator should not be declared to have been done without lawful authority and is of no legal effect and/or pass such other or further order or orders as to this Court may seem fit and proper.
 2. Facts relevant for disposal of the rule are that the petitioner herein appointed respondent No.2 construction contractor as per contract agreement and work order dated 18-3-1991; After completion of works respondent No.2 submitted final bill; The petitioner paid the bill in part deducting some items; Respondent No.2 claimed to settle the bill in full but the petitioner did not pay heed; Three committees were formed to settle the claim but yielded no result; The petitioner vide memo dated 31-3-2013 informed respondent No.2 that the claim cannot be considered for acceptance; Then the respondent No.2 as 1st party served notice on 29-4-2013. upon the petitioner for arbitration vide clause 65.2 of the contract agreement informing that the 1st party  nominated Mr Md Abdul Quddus an advocate of Chittagong District Bar Association as arbitrator and requested 2nd party- petitioner to appoint arbitrator within 30 days from the date of receipt notice complying provisions of Sub Section 4(b) (c) of Section 12 of the Arbitration Act; In response, petitioner appointed Mr Md Humayun Kabir, a retired Chief Engineer of BWDB as its arbitrator; Both the arbitrators failed to agree regarding appointment of third arbitrator; Due to disagreement, 1st party-respondent filed an application in the court of learned  District Judge, Chittagong, under Sub-Section 4(b)(c) of Section 12 of the Arbitration Act praying for appointment of third arbitrator to resolve dispute between the parties in accordance with law proposing three names. The application is registered as Miscellaneous Case No.1 of 2014.
3. The petitioner herein as 2nd party filed written objection denying averments made in the application and contending interning that after completion of construction work 1st party-respondent submitted final bill incorporating some items beyond the contract agreement as such those bills were not paid. Further contending that nature of the arbitration work requires a person having technical knowledge to be appointed as third arbitrator to resolve the dispute and proposed names of three persons, one is a retired Chief Engineer another is a Professor Chittagong University of Engineering and Technology and third one is a retired District and Sessions Judge.
4. After hearing the parties and perusing papers/documents, learned Additional District Judge, 6th Court, Chittagong, appointed Mr Rezaul Karim an Advocate and former President of Chittagong District Bar Association as third arbitrator holding that:
" I hold that it will be proper to appoint a person who has not been proposed by either party and who has legal expertise to explain and decide legal term of the contract".

5. Being aggrieved by and dissatisfied with the order, the 2nd party-petitioner preferred an application before the High Court Division under Article 102(2) (a) (ii) of the Constitution of the People's Republic of Bangladesh and obtained the present rule nisi along with an order of stay.
6. Mr Arobinda Kumar Roy, learned advocate appearing for the petitioner submits that learned Additional District Judge committed an illegality in not considering that nature of construction work requires" technical person to resolve the dispute as such impugned order is liable to be declared illegal and without lawful authority. He also submits that the learned Additional District Judge committed illegality in passing the impugned order appointing an Advocate without considering that dispute between the parties arose out of a highly technical matter which can only be resolved by a person having knowledge about the work as such impugned order is liable to be declared illegal and thus, is of no legal effect. He again submits that impugned order passed by the learned Additional District Judge under Sub-Section 4 of Section 12 of the Arbitration Act attached finality as such the order is amendable in writ jurisdiction. Today at the time of delivering judgment, learned advocate raised the question of limitation regarding arbitration miscellaneous case filed by the 1st party-respondent No. 2 in the Court of learned District Judge and referred the case of Panchu Gopal Bose vs Board of Trustees for Port of  Calcutta reported in (1993) 4 SCC 338.
7. On the other hand, Mr Kamal Ul Alam learned advocate appearing for the respondent No. 2 by filing affidavit-in-opposition and supplementary affidavit submits that Arbitration Act, 2001, has not prescribed any qualification for appointment of Arbitrator or Chairman and even the contract agreement executed by the parties does not attribute any qualification for appointment of Arbitrator/Chairman of the Tribunal rather power of the Court to appoint an arbitrator under Sub-Section 4 of Section 12 is unfettered which is not amenable in writ jurisdiction. In this regard learned advocate referred provisions of Section 32 of the Arbitration Act. He also submits that Sections 17, 19 and 43 provides opportunity to either of the party to raise objection in the given circumstances as such the rule is liable to be discharged. He again submits that this rule is not maintainable inasmuch as the petitioner accrued contractual right vide contact agreement executed by the parties regarding settlement of dispute and that right is not a legal right. In support of his submissions, learned advocate referred to the case of Union of India vs DP Singh, reported in AIR 1961 (Patna) 228; the case of You One Engineering and Construction Co. Ltd vs National Highways Authority of India, reported in AIR (2006) SC 3453; the case of Executive Engineer, Prachi Division, Bhubaneswar vs Gangarnm Chapolia, reported in AIR 1980 (Orissa) 51 and the case of Nagendra Nath Chakrabarty vs State of West Bengal, reported in AIR 1987 (Cal) 199.
8. We have perused the application and annexures appended thereof, affidavit in-opposition and supplementary affidavit-in-opposition filed by the respondent No. 2 along with the decisions cited by learned advocates.
9. Admittedly, a dispute arose between the parties regarding final bill submitted by the construction contractor, respondent No. 2 herein, after completion of work. It is also admitted that both the parties agreed to resolve the dispute through arbitration as per contract agreement and accordingly each party appoint one arbitrator but the appointed arbitrators failed to agree on the third arbitrator who shall be the chairman of the arbitral tribunal as per law. In the circumstances, respondent No. 2 herein as petitioner filed an application for appointment of third arbitrator under Section 12 (4) (b) of the Arbitration Act proposing names of three persons to be considered as third arbitrator. The petitioner herein as 2nd party filed written objection proposing names of another three persons to be considered as third arbitrator. Learned Additional District Judge after hearing the parties appointed an Advocate and former President of Chittagong District Bar Association as third arbitrator beyond the list of either parties holding that the appointed person being an advocate has legal expertise to explain and decide legal term of the contract. The petitioner invoked this jurisdiction against the order of learned Additional District Judge on the ground that nature of work is highly technical as such a person having knowledge in the area can resolve the dispute effectively. It is also their contention that since 1st party already appointed an advocate as their arbitrator there is no necessity to appoint another advocate as third arbitrator.
10. On perusal of clause 65 of the Contract agreement dated 18-3-1991 executed by the parties as quoted in the supplementary affidavit-in-opposition it appears that clause 65.1 provides provisions for settlement of dispute. Relevant portion from clause 65.1 is quoted herein under.
"Should the parties (owner and contractor) fail to appoint one Sole Arbitrator, each party shall appoint one Arbitrator and the two Arbitrators so appointed shall appoint a third arbitrator as agreed upon, who shall act as umpire".
11. In order to decide the issue, we may profitably quote Sub-Section 4 of Section 12 of the Arbitration Act, which runs as follows:
 
" ১২ । সালিসকারী নিয়োগ ঃ-
১ । -----------------------
২ । ------------------------
৩ । ------------------------
৪ । উপ-ধারা (৩) এর নিয়োগ পদ্ধতি অনুসরণের ক্ষেত্রে---
(ক) অপর পক্ষ হইতে অনুরোধ প্রাপ্তির ত্রিশ দিনের মধ্যে সালিসকারী নিয়োগ করিতে যদি কোন পক্ষ ব্যর্থ হন, অথবা
(খ) নিয়োগপ্রাপ্ত সালিসকারীগণ যদি তাহাদের নিয়োগের পরবর্তী ত্রিশ দিনের মধ্যে তৃতীয় সালিসকারী নিয়োগে সম্মত হইতে ব্যর্থ হন তাহা হইলে যে কোন পক্ষের আবেদনের প্রেক্ষিতে উক্ত তৃতীয় সালিসকারী,
(গ) আন্তর্জাতিক বাণিজ্যিক সালিস ব্যতীত অন্যান্য সালিসের ক্ষেত্রে জেলাজজ নিয়োগ করিবেন, এবং
(ঘ) আন্তর্জাতিক বাণিজ্যিক সালিসের ক্ষেত্রে প্রধান বিচারপতি, কিংবা প্রধানবিচারপতি কর্তৃক মনোনীত সুপ্রীম কোর্টের কোন বিচারক নিয়োগ করিবেন ।
(ছাট) ৫ উপ-বিধি (৪) এর (খ) এর অধীন নিযুক্ত তৃতীয় সালিসধারী উক্ত ট্রাইব্যুনালের চেয়ারম্যান হইবেন ।”
12. Neither the law nor the contract agreement prescribes any qualification that the arbitrator has to be a different person depending on the nature of the dispute rather from the provision of law it appears that Court has unfettered discretion under Sub-Section (4) of Section 12 of the Arbitration Act in the matter of appointment of an arbitrator after hearing the parties. The petitioner raised objection regarding appointment of an advocate as third arbitrator who will act as Chairman of the tribunal since nature of the work demands an arbitrator having technical knowledge. In this regard, we like to quote observation of his lordship passed in the case of Executive Engineer, Prachi Division, Bhubaneswar vs Gangaram Chapolia, reported in AIR 1980 (Orissa) 51:
"If the arbitration work requires some technical knowledge, as urged by the petitioner, even then it cannot be said that the Advocate arbitrator cannot properly perform his job. Advocates, in course of their profession and because of the same, acquire knowledge about men and matters of various natures. Their profession calls upon them to deal with and tackle various types of complicated or technical matters, in many of which they may not have prior learning, knowledge or expertise.
They in such cases consult experts in the line and equip themselves to meet the requirements of the job entrusted to them. Therefore, merely because the claims are in respect of engineering work, or the assessment of the same may require some technical knowledge, it cannot be said that an Advocate' of standing cannot do that work. Moreover, nothing prevents the arbitrator to take the assistance of the services of an engineer or of a technical man of competence so that the arbitrator can take a proper view of the engineering or the technical aspects of the matter, enabling him to make proper assessment of the claims preferred before him. It cannot, therefore, be said that the advocate arbitrator is not qualified to arbitrate this matter."
13. Section 32 of the Arbitration Act, 2001, provides that the Arbitral Tribunal can take assistance from an expert to resolve the dispute in the manner as quoted hereinunder:
”৩২। বিশেষজ্ঞ, আইন উপদেষ্টা বা এসেসর  নিয়োগের ক্ষমতা--- (১) পক্ষগণের মধ্যে চুক্তি না থাকিলে, সালিসী ট্রাইব্যুনাল ---
(ক) তৎকর্তৃক নির্ধারিত সুনিদিষ্ট বিষয়ে প্রতিবেদন দাখিল করার জন্য বিশেষজ্ঞ বা আইন উপদেষ্টা নিয়োগ করিতে পারিবে;
(খ) কারিগরি বিষয়ে সহায়তাদানের জন্য এসেসর নিয়োগ করিতে পারিবে: এবং
(গ) সংশ্লিষ্ট কোন অর্থ প্রদানের বা সংশ্লিষ্ট দলিল, দ্রব্যসামগ্রী বা অন্যান্য সম্পত্তি বিশেষজ্ঞ, আইন উপদেষ্টা, বা ক্ষেত্রমত, এসেসরের পরিদর্শনের জন্য উপ¯'াপন করিতে বা উহাতে প্রবেশাধিকার প্রদানের জন্য কোন পক্ষকে আদেশ করিতে পারিবে।
(২) পক্ষগণ ভিন্নভাবে সম্মত না হইলে ---
(ক) কোন পক্ষের বা সালিসী ট্রাইব্যুনালের অনুরোধে কোন বিশেষজ্ঞ, আইন উপদেষ্ট, বা ক্ষেত্রমত, এসেসর  তাহার লিখিত বা মৌখিক প্রতিবেদন দাখিল এবং তথ্য, মতামত বা পরামর্শ সরবরাহ করিবার পর মৌখিক শুনানীতে অংশগ্রহণ করিবে, যাহাতে পক্ষগণ তাহাকে প্রশ্ন করিতে এবং বিবেচ্য বিষয়ে বিশেষজ্ঞ সাক্ষী উপ¯'াপনের সুযোগ পাইতে পারে;
(খ) বিশেষজ্ঞ, আইন উপদেষ্টা, বা, ক্ষেত্রমত, এসেসর তাহার দখলে থাকা সমুদয় দলিল, দ্রব্য সামগ্রী বা, অন্যান্য সম্পত্তি, যাহা প্রতিবেদন প্রণয়নের জন্য তাহাকে সরবরাহ করা হইয়াছিল, তাহা কোন পক্ষের অনুরোধে উক্ত পক্ষের প্রাপ্তিসাধ্য করিবে ;
(গ) কোন বিশেষজ্ঞ, আইন উপদেষ্টা বা এসেসর কর্তৃক সালিসী ট্রাইব্যুনালে দাখিলকৃত কোন প্রতিবেদনে তথ্য মতামত বা পরামর্শের উপর মন্তব্য করার জন্য পক্ষগণকে যুক্তিসংগত সুযোগ প্রদান করিবে ।”
14. Again, Sections 17, 19 and 43 provides opportunity to either of the parties to raise their objection before the arbitral tribunal. In the case of State of Orissa vs Gokulananda Jena, reported in AIR 2003 SC 4207, Indian Supreme Court held:
"However, we must notice that in view of Section 16 read with Sections 12 and 13 of the Act as interpreted by the Constitution Bench of this Court in the M/s Konkan Railway (supra) almost all disputes which could be presently contemplated can be raised and agitated before the Arbitrator appointed by the Designated Judge under section 11(6) of the Act. From the perusal of the said provisions of the Act it is clear that there is hardly any area of dispute which cannot be decided by the Arbitrator appointed by the Designated Judge. If that be so, since an alternative efficacious remedy is available before the Arbitrator, writ Court normally would not entertain a challenge to an order of the Designated Judge made under section 11(6) of the Act which includes considering the question of jurisdiction of the Arbitrator himself. Therefore, in our view even though a writ petition under Article 226 of the Constitution is available to an aggrieved party ground available for challenge in such a petition is limited because of the alternative remedy available under the Act itself".
15. As it is stated above, at the time of delivering judgment learned advocate for the petitioner submits that the arbitration miscellaneous case filed by respondent No. 2 in the Court of learned District Judge was barred by limitation and referred the decision cited above. It may be mentioned here that question of limitation is neither a subject matter of this rule nor agitated in the Court below.
16. We do not find any merit in the rule.
17. In the result, the rule is discharged without any order as to cost.
18. Order of stay granted at the time of issuance of rule is hereby vacated.

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Govt's machinery is broken: HC's direction is welcome but will not work


Selling and storing of substandard and expired drugs in the pharmacies across the country have reached such a dangerous stage that it has now become extremely harmful for the public health requiring the High Court to interfere.  The government seems to have totally failed to ensure proper monitoring in this ...

Football »

France detain soccer great Platini in 2022 World Cup probe


AP, Paris :French police investigating whether corruption played a role in the stunning decision to award the 2022 World Cup to Qatar took 1980s soccer superstar and former top executive Michel Platini into custody Tuesday for questioning.Platini's representatives denied any wrongdoing on his part, saying he is "absolutely confident in ...

International »

Johnson looks to cement UK leadership lead after surviving TV debate


Brexit figurehead Boris Johnson will look to cement his stranglehold of the UK leadership race Wednesday after emerging unscathed from a TV debate against his four remaining rivals.The former foreign minister kept his cool and made no evident stumbles in a showdown that followed a second-round ballot in which he ...

Business & Economy »

MBL's award giving ceremony held


Economic Reporter :Mercantile Bank Ltd on Monday organised the 'Mercantile Bank Sommanona-2019' to award four eminent personalities and one institution for their outstanding contributions to the society. Bangladesh Bank Governor Fazle Kabir handed over the gold medals, crests and cheques to all the awardees at a graceful ceremony at Hotel ...

Entertainment »

Maera Mishra is excited about her upcoming projects!


Maera Mishra is an Indian actor and model. She is as in the 11th season of MTV Splitsvilla. Ever since she featured in Splitsvilla Maera has not looked back. Maera is also a budding actor and she could be seen in love on the run on MTV, Savdhan India, Fear ...

Entertainment »

Soundarya Sharma yet again strikes a humanitarian chord


It was just recently when she instead of attending an event chose to help an injured cyclist. Now we just learned that Actor Soundarya Sharma is sponsoring health care for an elderly couple for a year, she came across an article about how elderly are lacking proper health care, as ...

International »

Trump heads back to base for 2020 campaign kickoff


President Donald Trump will get a big crowd of his most loyal supporters at Tuesday's official 2020 reelection campaign kickoff in Florida but dismal early poll numbers show the larger-than-life Republican businessman is vulnerable.Organizers claim the Orlando rally has sold out a 20,000-seat arena, with many more to gather outside, ...

International »

China warns US against opening ME 'Pandora's box'


AFP, Beijing :China on Tuesday warned against opening a "Pandora's box" in the Middle East after the United States announced the deployment of 1,000 additional troops to the region amid escalating tensions with Iran.Foreign Minister Wang Yi also urged Tehran to not abandon the nuclear agreement "so easily" after Iran ...

Cricket »

Shakib Al Hasan: A man born to create milestone


Talismanic all-rounder Shakib Al Hasan now won two matches for Bangladesh in this World Cup, all by alone. When most of his teammates looked inconsistent, he did it by his own almost, albeit with little support from two different men in two different games.In Bangladesh's 21-run victory over South Africa, ...

Editorial »

No development projects destroying the Sundarbans


TRANSPARENCY International Bangladesh has called upon the government to immediately suspend all controversial projects, including the Rampal Power Plant near the Sundarbans. TIB also expressed deep concern following the UNESCO's recent proposal to put the Sundarbans on the list of "World Heritage in Danger" in the proposed agenda for its ...

Cricket »

Jason Roy to miss Afghanistan, Sri Lanka games with hamstring tear


England opening batsman Jason Roy, who left the field during the team's eight-wicket win over West Indies, has been ruled out of their next two matches, against Afghanistan and Sri Lanka, an England and Wales Cricket Board release announced on Monday, 17 June.Roy had left the field during the West ...

International »

"Khashoggi death painful, stop exploiting case": Saudi Crown Prince


 AFP, Riyadh :Saudi Crown Prince Mohammed bin Salman has warned against "exploiting" the murder of journalist Jamal Khashoggi for political gains, in what appeared to be a veiled attack on Turkey.Turkey's ties with Saudi Arabia have come under strain since the brutal murder last October of Khashoggi in the Saudi ...

Editorial »

No end to pain and miseries of slum dwellers


LOCAL Government Division Minister on Sunday informed the National Parliament that about 6.46 lakh people were living in 3,394 slums in the capital city Dhaka. Responding to a question from a lawmaker, he said there were 1,639 slums housing 4,99,011 people in the Dhaka North City Corporation area and 1,755 ...

Entertainment »

Taylor Swift releases new single You Need To Calm Down


Singer-songwriter Taylor Swift needs us to calm down but with the release of her latest single we just can’t! The 29-year-old singer dropped her new single titled You Need To Calm Down from her upcoming studio album Lover. The artist shared the lyrical video of the song on her official ...

Cricket »

No fracture found on Mushfiqur's forearm


Bangladesh heaved a huge sigh of relief after an X-ray report revealed that Mushfiqur Rahim had no fracture on his forearm.Mushfiqur, considered as the most dependable batsman of the country, got hit on his right forearm during a batting practice session while facing a bouncer from pace bowler Mustafizur Rahman.He ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news