Delhi High Court, observed a petition under Article 227 of Constitution challenging the order of arbitrator under Sec 25(a) as maintainable.
Section 25(a) of the A&C Act, 1996 provides that, if the claimant fails to communicate his statement of claim in accordance with Sec 23(1), then the Arbitral Tribunal shall terminate the proceedings. And accordingly, if the proceedings been terminated by the Arbitral Tribunal, no remedy is available even

under Sec 34 or Sec 36 or under any other provisions of the A&C Act. Hence, Sec 25(a) Order by the Arbitrator can be challenged by a Petition under Article 227.
According to Article 227 of The Constitution, every High Courts shall have superintendence over all Courts and Tribunals throughout the territories in relation to which it exercises jurisdiction.

In the present case, the sole arbitrator, exercising her jurisdiction under Sec 25(a) of A&C Act, 1996 terminated the arbitral proceedings before her on the ground of default on the part of the petitioner, in filling statements of claim, allegedly despite of repeated opportunities been granted for this purpose. Aggrieved by this order, the petitioner filled a Petition under Article 227 of The Constitution to challenge the impugned order under Sec 25(a) of A&C ACT.

Where, the Petitioner’s Counsel contented that the present case is distinguishable from all other cases, as the impugned orders were passed under Sec 25(a) of the 1996 Act, against which there is no alternate remedy available to the petitioner. Besides, relied on the Supreme Court’s judgement in Srei Infrastructure Finance Ltd v. Tuff Drilling Pvt. Ltd [(2018) 11 SCC 470] where the court proposed that the Learned Arbitral Tribunal is bound under law to consider the application to recall the impugned orders passed under Sec 25(a) of the1996 Act.

On the basis of the petitioner’s contentions, and the law laid down in Srei Infrastructure Finance Ltd., the Delhi High Court partly allowed the aforesaid writ petitions with no order as to cost.

Case Title:   Union of India v. Indian Agro Marketing Co operative Ltd.
Citation :   CM(M) 424/2021 & other connected matters.