Arbitration Termination under Section 32(2)(c) - A Detailed Examination Understanding the Implications and Applicability.


Summary of Judgement

Appeal regarding the legality of terminating arbitral proceedings under Section 32(2)(c) of the Arbitration and Conciliation Act, 1996. It outlines the factual background of the dispute involving Dani Wooltex Corporation, Sheil Properties, and Marico Industries. The appeal arises from the termination order passed by the Arbitral Tribunal, challenged by Sheil Properties. The document examines submissions from both parties' legal representatives and analyzes relevant provisions of the Arbitration Act. Ultimately, the court concurs with the decision of the learned Single Judge, dismissing the appeal and directing the appointment of a new Arbitrator.

  1. Factual Aspects:

    • Introduction to the parties involved and the nature of the dispute.
    • Overview of the Development Agreement and Memorandum of Understanding.
    • Initiation of arbitral proceedings and chronological events leading to termination.
    •  
  2. Consideration of Submissions:

    • Examination of relevant sections of the Arbitration Act, including Sections 14, 15, 25, and 32.
    • Analysis of the Arbitrator's powers and obligations in arbitral proceedings.
    • Interpretation of grounds for terminating proceedings under Section 32(2)(c).
    • Evaluation of the claimant's conduct and implications for abandonment of claim.
  3. Conclusion:

    • Concurrence with the decision of the learned Single Judge to set aside the termination order.
    • Dismissal of the appeal without costs.
    • Direction for the appointment of a new Arbitrator following the withdrawal of the previous sole Arbitrator.

Case Title: Dani Wooltex Corporation & Ors. vs Sheil Properties Pvt. Ltd. & Anr.

Citation: 2024 LawText (SC) (5) 165

Case Number: Civil Appeal No. 6462 Of 2024

Advocate(s): Gaurav Agarwal, Mahesh Agarwal, Rishi Agrawala, Ankur Saigal, Gaurav Mehta, S. Lakshmi Iyer, Vikrant Shetty, Vidisha Swarup, E. C. Agrawala, Shekhar Naphade, Vikas Mehta, Adith Nair, Sahil Gandhi, Ruben Vakil, Ankit Vashisht

Date of Decision: 2024-05-16