ADRAppointmentSupreme Court of India (Constitution Bench)

Konkan Railway Corporation Ltd. v Mehul Construction Co.

(2000) 7 Supreme Court Cases 20120001 min read
The case in brief30-second read
Facts
Konkan Railway and Mehul Construction had a construction contract with an arbitration clause. Dispute arose; one party applied to the Chief Justice under S.11(6) for appointment of arbitrator.
Issue
Whether the appointment of an arbitrator by the Chief Justice under S.11(6) is a judicial or administrative function.
Held
The power under S.11(6) is a judicial function, not merely administrative.
Principle
The power of appointing an arbitrator under S.11 is a judicial function, not merely administrative

Facts

  • Konkan Railway and Mehul Construction had a construction contract with an arbitration clause
  • Dispute arose; one party applied to the Chief Justice under S.11(6) for appointment of arbitrator
  • The question was whether the Chief Justice's power under S.11(6) is administrative (rubber-stamp) or judicial (requiring examination)

Issue

  1. Whether the appointment of an arbitrator by the Chief Justice under S.11(6) is a judicial or administrative function.

Held

  • The power under S.11(6) is a judicial function, not merely administrative.
  • The Chief Justice must satisfy himself about the existence of a valid arbitration agreement before appointing.
  • However, the scope of examination is limited (not a full trial on validity).
  • Post-2015 Amendment: S.11(6A) further limited examination to "existence of arbitration agreement" only.

Ratio decidendi

S.11(6) appointment power is judicial in nature. The court must at minimum verify that a valid arbitration agreement exists before appointing an arbitrator. This prevents abuse where parties seek arbitration without any agreement.

Exam use

How to use it in an answer

Key line: "The Chief Justice's power under S.11(6) is judicial, not administrative. The court must verify existence of a valid arbitration agreement."

Cite this

Citation

Konkan Railway Corporation Ltd. v Mehul Construction Co. (2000) 7 Supreme Court Cases 201

Reported: Supreme Court judgment. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.