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High Court clears decks for hearing into CHB plea on arbitrators’ fees

Maintains that court has extraordinary jurisdiction to interfere in arbitration proceedings at interim stage.

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Holding that the Punjab and Haryana High Court has the extraordinary jurisdiction to intervene at an interim stage in an arbitration proceeding,Justice Hemant Gupta today cleared the decks for hearing petition a filed by Chandigarh Housing Board (CHB). The Board had moved the High Court against the “exorbitant” fees being charged by the arbitrators appointed in the matter pending before the Arbitration Tribunal pertaining multi-crore mega project Prideasia.

The development assumes significance since M/s Parsvnath had taken an objection that the petition filed by CHB is not maintainable. Counsel for Parsvnath had contended that a Court should refrain from interfering with the proceedings of an arbitration.

Showing little conviction in the averment raised,Justice Hemant Gupta ruled that the High Court has the extra ordinary civil jurisdiction to intervene in an arbitration proceeding at an interim stage and pass appropriate directions. Mincing no words,Justice Hemant Gupta observed,“What if proceedings continue for years!” Justice Gupta added that such delay cannot be allowed to continue as such inordinate delays in arbitration proceedings are bringing a bad name to Courts and Arbitrators.

On the other hand,Advocate Sanjay Kaushal appearing on behalf of CHB said that the fees charged by the arbitrators is exorbitant. Kaushal today reiterated the alternate demand made by CHB wherein it has demanded that a fresh Arbitration Tribunal be constituted.

Kaushal averred that since no relief is sought against Parsvnath,it (Parsvnath) has no locus to argue on behalf of arbitrators. He requested the Court to direct Parsvnath to assist the Court in the capacity of an amicus curiae.

On the other hand,counsel for Parsvnath argued that CHB “cannot dictate terms”. Responding to an argument raised by the counsel for Parsvnath that there is no judicial precedent to interfere with arbitration proceedings at an early stage,Justice Hemant Gupta said,“Some beginning has to be made some day.”

The case has been posted for resumed hearing in the second week of December. Counsel for Parsvnath sought time to move the Supreme Court to challenge today’s order.

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Despite repeated directions from the High Court,the three arbitrators,retired Supreme Court or High Court Judges including a former Chief Justice of India,did not respond to the notices nor file replies.

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  • Chandigarh Housing Board Chief Justice of India high court Parsvnath
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