Just a synopsis of the relevant aspects of a recent court judgement ( emphasis is mine ):
- Award passed without there being an arbitration agreement between the parties which is is sine qua non for arbitration to happen and in absence of it, there cannot be any valid arbitration.Violation of Section 7 of the Act held.
- Arbitrator could not have assumed jurisdiction merely because it did not receive any response from the respondent/applicant. The correct recourse for the petitioner was to file an application for appointment of an arbitrator, however, it did not approach the High Court but itself appointed the arbitrator, thus, the award has resulted in violation of Section 11 as well.?
- Petitioner had contended that copies of the award was served on the respondent/ applicant on 20.08.2017. However, Court observed that as per the postal receipts from the same date the weight of the cover letter of the petitioner was merely 14 grams and the weight of the arbitrator's cover letter was only 55 grams. Further, no address was mentioned on the postal receipt. So, the Court held that the cover letters/consignments sent by the petitioner and the arbitrator do not inspire confidence as they weigh only 55 grams, and a cover containing the Award would weigh more than that.
- Consequently, the Court held that the respondent/applicant became aware of the award only when the show cause notice dated 05.11.2018 was served on it and it then received a copy from the arbitrator, therefore, the petition was filed within the limitation period.
Accordingly, the Court set aside the arbitral award.
The Sections referred above are from the Arbitration Act.
Case Title: SAMPATHRAO SUDHAKAR v. EMIRATES INTERNATIONAL AIRLINES, ICOMAOA No. 1&2 of 2019
Wonder if there is a law/ ruling someplace that an Arbitral Award cover letter should weigh more than 55 grams. Else we have a precedent here,perhaps :-) !
