The Top Court Directs High Courts to Dispose Of Arbitration Cases U/S 11 (6) and 11(5) Within 6 Months from the Date of Filing

CASE: Shree Vishnu Constructions v. Engineer in Chief, Military Engineering Service & Ors

BENCH: Justices MR Shah and BV Nagarathna

Recently, the Supreme Court directed all High Courts to dispose of all applications for appointment and substitution of arbitrators pending for over a year within the next six months. If arbitrators are not appointed at the earliest, it will defeat the purpose of the Arbitration Act and may ultimately affect the business in the country.

On April 21, the Top Court called upon all the HCs to submit details in regards to the pending applications before the concerned HC u/s 11(6) and 11(5) of Arbitration and Conciliation Act (appointment of an arbitrator).

After examining, the Court noted that applications for the appointment of arbitrators are pending for the last four to five years. The bench further noted that many applications were found defective in the Rajasthan HC, and these unaffective applications are pending from 2016 onwards. 

Therefore, the SC directed HCs to ensure that such applications should be disposed of within six months of the date of filing. Registrar Generals of the respective High Courts were also ordered to submit compliance reports after six months.