Justice D. Krishnakumar Appointed as Sole Arbitrator for De-novo Proceedings in Thoubal Multipurpose Project Dispute
In a significant development, the Manipur High Court has set aside an arbitral award in the case of M/S Progressive Construction Limited vs. State of Manipur, paving the way for fresh arbitration proceedings. The decision was made following a mutual agreement between the parties involved to appoint a new arbitrator and reinitiate the arbitration process.
Presided over by Chief Justice Mr. M. Sundar, the court heard submissions from both parties, who collectively expressed their consensus to dispose of the arbitration petition through a consent order. The original arbitral award, dated March 25, 2026, was annulled without any assessment of its merits. This move was primarily driven by compliance concerns under Section 31(5) of the Arbitration and Conciliation Act, 1996.
The parties have agreed to appoint Hon'ble Mr. Justice D. Krishnakumar, former Chief Justice of the Manipur High Court, as the sole arbitrator for the new proceedings. This decision was reached after both sides recognized the necessity for de-novo arbitration to resolve the issues surrounding the Thoubal Multipurpose Project, specifically the construction of the Earth Dam under Agreement No.: TPD-I/Agree/89-90/12 for the year 1989-90.
The court's order detailed that the newly appointed arbitrator would proceed from the stage of framing issues, with all previous records to be handed over by the former arbitrator, Mr. Th. Joykumar Singh. The costs related to the arbitration, including fees and other expenses, are to be borne equally by both parties.
The judgment underscores a collaborative approach to resolving the dispute, with both the petitioner and the State of Manipur agreeing to the terms laid out by the court. The reappointment of an arbitrator and the setting aside of the previous award is intended to ensure a fair and thorough examination of the case under the procedural guidelines of the Arbitration and Conciliation Act.
The High Court's decision is seen as a step towards more equitable arbitration practices, emphasizing the importance of mutual consent and compliance in arbitration proceedings.
Bottom line:-
Arbitration - Consent order passed for setting aside the arbitral award and appointing a new arbitrator by mutual agreement of parties to facilitate de-novo arbitration proceedings.
Statutory provision(s): Sections 11(6), 14, 15, 31(5) of the Arbitration and Conciliation Act, 1996
M/S Progressive Construction Limited v. State of Manipur, (Manipur) : Law Finder Doc id # 2936107
