N. Kumar, J.

1. High Court Registry has registered this contempt petition on the basis of the letter dated 02.04.2011 written by Justice B.S. Raikote, Former Judge of the High Court of Karnataka requesting to initiate contempt proceedings against the accused herein. Facts in brief are as under:

Relying on an agreement dated 12.04.2004 the accused herein filed C.M.P. No. 41/2008 before this Court against the Additional Managing Director, National Agricultural Co-Operative Marketing Federation of India Ltd., and M/s. Earthtech Enterprises Limited, seeking appointment of an Arbitrator as per the Arbitration Clause contained in the said agreement. This Court by an order dated 1st December 2008 allowed the petition, appointed Justice Sri. B.S. Raikote, Former Judge of the High Court of Karnataka and Andhra Pradesh. Further, it was directed that the fees of the Arbitrator shall be fixed by him and the Arbitrator shall conclude the proceedings expeditiously. On receipt of the copy of the said order, the Arbitrator entertained the reference, issued notice to both the parties. Thereafter, the accused herein filed his claim petition praying for an award of Rs. 94,82,90,000/-. The Tribunal by its order dated 14.11.2009 fixed the fees of the Arbitration on the basis of the proposal made by both the parties as Rs. 20,000/- per sitting, to be shared equally by both the parties. The respondent in the claim petition paid the share of Arbitration fees @ Rs. 10,000/- per sitting all along. But the claimant/accused paid Rs. 10,000/- on 20.12.2009 and Rs. 25,000/- on 24.04.2010. He also did not cooperate in the progress of the case. He did not file any rejoinder to the statement of objections. In the month of August 2010 the total arrears payable by the claimant towards Arbitration fee was Rs. 2,25,000/-. The claimant gave a post-dated cheque to be presented on or after 18.08.2010. On presentation to the bank the said cheque was returned for the reason 'insufficient funds'. Thereafter, the claimant who was present in person on 11.12.2010 undertook to pay the amount covered by the dishonoured cheque and all the arrears falling due thereafter. The Arbitration fees due as on 29.01.2011 worked out to Rs. 3,40,000/-, but the same was not paid. The Arbitral Tribunal relying upon Section 38(2) Proviso of the Act directed the respondent to pay the amount due, by posting the case to 26.02.2011. The respondents submitted that they have paid their share of the Arbitration fees and are not liable to pay the arrears of the Arbitration Fees which is payable by the claimant. They submitted that the claimant has violated the undertaking given to the Tribunal and therefore, the proceedings should be terminated and the claimant punished under the provisions of the Contempt of Courts Act, 1971. Thereafter, as the claimant as well as his Counsel remained absent and the Arbitrator's fees was also not paid, invoking the powers conferred under Section 38(2) of the Act, the Arbitrator terminated the arbitration proceedings. He was of the view that the Arbitral Tribunal was deemed to be a Sub-ordinate Court to the High Court and as the claimant had disobeyed the order of this Court as well as the undertaking given to the Arbitral Tribunal, it amounted to contempt of Court and therefore, proceeded to pass the order dated 2nd April 2011 as under:

The arbitral proceedings are hereby terminated under Second Proviso to Section 38(2) of the Arbitration and Conciliation Act 1996. However, it is made clear that if the Claimant, so chooses, he may file an application for reopening of the case within 30 days, from the date of the receipt of this order, by depositing the entire arrears.

The Registrar General of the High Court is hereby requested to place the matter before My Lord the Chief Justice or before any other appropriate bench of the Hon'ble High Court of Karnataka;

a) For initiating appropriate Contempt Proceedings against the Claimant under The Contempt of Courts Act 1971