Dilip Buildcon Limited vs. National Highways Authority of India (NHAI) & Anr.
Background
Dilip Buildcon had approached the Court for interim relief in a dispute with NHAI over a highway construction contract, pending formal arbitration. Both sides confirmed at this hearing that they had each already nominated their arbitrator, but a presiding arbitrator was yet to be appointed.
Decision Breakdown
The Court directed that the presiding arbitrator be appointed by mutual consent of the two nominated arbitrators within three weeks. It ordered that once the tribunal is formed, this interim-relief petition will be treated as an application before the arbitral tribunal itself (rather than the Court), and that the interim protections already granted by the Court would continue until the tribunal makes its own decision on the matter.
Lesson Learnt
Once an arbitral tribunal is being constituted, courts typically hand over ongoing interim-relief matters to that tribunal rather than continuing to decide them, while ensuring existing protections remain in place during the transition.