Arbitration even without clause
The Supreme Court last week approved of the appointment of an arbitrator in the dispute between Kaikara Construction Company and the Kerala government, though earlier the high court had rejected the request of the company to appoint an arbitrator under the Arbitration and Conciliation Act. There was a term in the contract that "arbitration shall not be a means of settlement of dispute or claims or anything on account of the contract." Instead, there was a provision for appointing a 'dispute review expert'. When disputes arose over payment and completion of road construction, the company sought appointment of the expert, but it got no response. So it moved the high court for arbitration. The high court dismissed it on the ground that there was no arbitration clause in the agreement. In the appeal, the Supreme Court noted that in the bidding document, a standard arbitration clause was included. After the court reserved its judgment, the parties agreed to arbitration. Therefore, the high court order was quashed and a retired high court judge was appointed the sole arbitrator.
Source: Business Standard - https://www.business-standard.com/article/opinion/discretion-for-wealth-tax-officer-114070600709_1.html
