Konkan Railway Corporation Ltd. v Mehul Construction Co.

(2000) 7 Supreme Court Cases 201Supreme Court of India (Constitution Bench)2000Alternate Dispute Resolution
ADRsection-11appointmentjudicial-function

Rule established

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.

How to use it in an exam

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."

Source

Source: Supreme Court judgment

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

Cited in study notes

ADRHistorical Background and Objectives of the 1996 ActNature of S.11 power: judicial function established