GARWARE WALL ROPES LTD Vs. COASTAL MARINE CONSTRUCTIONS & ENGINEERING LTD
LAWS(SC)-2019-4-51
SUPREME COURT OF INDIA
Decided on April 10,2019

GARWARE WALL ROPES LTD Appellant
VERSUS
Coastal Marine Constructions And Engineering Ltd Respondents

JUDGEMENT

R.F.NARIMAN, J. - (1.) Leave granted.
(2.) This appeal arises out of a sub-contract given by the appellant to the respondent in respect of work to be done for installation of a geo- textile tubes embankment with toe mound at village Pentha in Odisha for protection against coastal erosion. The sub-contract agreement is dated 14.06.2013, Annexure III of which contains the following arbitration clause: "Any and all claims, disputes, questions or controversies involving the parties and arising in connection with the Agreement or execution, interpretation, validity, performance, termination hereof which cannot be finally resolved by such parties [sic through] negotiation shall be resolved by final and binding arbitration held in Pune. The disputes shall be referred to a sole arbitrator to be appointed by GWRL and COMACOE jointly in agreement."
(3.) Disputes arose between the parties, and on 02.01.2015, the appellant terminated the sub-contract. As a result, on 20.07.2016, the respondent wrote to the appellant stating that as disputes and differences had arisen between the parties, notice was given of appointment of Mr. Mihir Naniwadekar, Advocate, as sole arbitrator. The appellant replied on 17.08.2016, stating that the appointment of Mr. Naniwadekar as sole arbitrator was not acceptable as invocation of arbitration in pursuance of the agreement is premature. The respondent, therefore, filed a petition under Section 11 of the Arbitration and Conciliation Act, 1996 ["1996 Act"] on 10.02.2017 before the Bombay High Court. By the impugned judgment dated 09.03.2018, the Section 11 petition was allowed and Mr. Naniwadekar was appointed as sole arbitrator to adjudicate upon disputes and differences which have arisen between the appellant and the respondent in relation to the sub-contract dated 14.06.2013.;


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