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ARTICLE · 18 NOVEMBER 2024

Supreme Court Bars Fresh Filing Of Section 11 Arbitration Application After Unconditional Withdrawal

The Hon'ble Supreme Court recently in M/s. HPCL Bio-Fuels Ltd. vs M/s. Shahaji Bhanudas Bhad held that Order 23 Rule 1 of the Civil Procedure Code ("CPC") applies to applications...

IndiaLitigation, Mediation & Arbitration

Introduction

The Hon'ble Supreme Court recently in M/s. HPCL Bio-Fuels Ltd. vs M/s. Shahaji Bhanudas Bhad held that Order 23 Rule 1 of the Civil Procedure Code ("CPC") applies to applications for the appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 ("Arbitration Act"). Thus, if a party unconditionally withdraws its application for the appointment of an arbitrator under Section 11(6) of the Arbitration Act, without craving leave to file a fresh application, the party would be precluded from submitting a subsequent application for the appointment of an arbitrator.

Facts Of The Case

The Appellant, a government company under Section 4(35) of the Companies Act, 2013, engaged in manufacturing bio-fuels and wholly owned by Hindustan Petroleum Corporation Ltd., had issued tenders in 2012 and 2013 for capacity enhancement at Lauriya and Sugali on a turnkey basis. The Respondent, operating as a sole proprietor under M/s

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