In ACC Limited v Global Cements Ltd, the Supreme Court held that an “arbitration clause would have life so long as any question or dispute or difference between the parties exists unless the language of the clause clearly expresses an intention to the contrary”. The court held that parties were not prohibited or debarred from appointing a substitute arbitrator in case of the death of a named arbitrator.
The dispute originated in an agreement in 1989, by which ACC transferred some land with building and mining leases to Global Cements. Subsequently, Global Cements filed an application before Bombay High Court under section 11 of the Arbitration and Conciliation Act, 1996, for appointment of a sole arbitrator to adjudicate disputes between the parties.
ACC took the view that as the named arbitrators, Nani Palkhivala and JC Seth, were no longer available, the arbitration clause did not survive.
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The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.