Supreme Court Overturns Tiara Infrastructure Arbitrator Appointment

Authority: Supreme Court of India

Order Date: 01 September 2026

Parties: Devi Shakuntala Thakral Charitable Foundation (appellant) vs M/s. Tiara Infrastructure Ltd. (respondent).
Contract Background: Agreement dated 2010 for construction work to be completed within 12 months; Clause 21 contained an arbitration clause.
Arbitration Initiation: Respondent invoked arbitration on 13‑02‑2010; both parties consented; arbitrator appointed under Clause 21 and commenced proceedings on 06‑03‑2010.
Arbitrator Activity: Only one undated letter from the arbitrator directing responses by 17‑08‑2010; no further action thereafter.
Section 9 Proceedings: Respondent filed an application under Section 9 of the Arbitration Act on 08‑03‑2010; district‑court proceedings continued for several years.
Renewed Efforts: After a long lapse, respondent emailed the arbitrator on 08‑04‑2018, issued a fresh arbitration notice on 31‑05‑2019, and filed a Section 11 application for appointment of a new arbitrator on 25‑01‑2020.
High Court Decision: The High Court, interpreting limitation, appointed Shri Justice Dinesh Kumar Paliwal (Former Judge, Madhya Pradesh High Court) as sole arbitrator, holding that the original arbitrator’s mandate was automatically revoked due to his inaction.
Appellant’s Grounds: Argued that a second Section 11 application was not maintainable and, even if treated as fresh, was barred by limitation because the original arbitrator was appointed in 2010.

The Supreme Court allowed the appeals, held that the Section 11 application filed on 25‑01‑2020 is clearly barred by limitation, and set aside the High Court’s order appointing a new arbitrator.
No order as to costs was made.
Any pending applications, if any, shall stand disposed of.

Topics: Arbitration, Limitation, Judicial Review