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Supreme Court of India 2016-07-25 allowed

Union of India & Anr vs Premco-DKSPL (JV) & Ors

Bench: 2 — Shiva Kirti Singh

In Brief

A railway contractor sought arbitration and sent a demand notice on 12 June 2013. Under the contract, the Railways had 60 days to respond with a panel of officer names. The contractor filed a court application under Section 11 of the Arbitration Act on 23 July 2013—before the 60-day period expired. The High Court upheld a non-railway judge's appointment as arbitrator, holding the Railways had forfeited their right. The Supreme Court reversed this, ruling that the contractor's application was premature: the contractual time period must be fully respected before any forfeiture claim arises. The agreement's express terms bind both parties and must be honored by the courts.

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Arbitration Arbitration and Conciliation Act 1996 Section 11 appointment Arbitrator appointment Forfeiture of rights Contract interpretation Railways

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