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2023 Supreme(Pat) 537
IN THE HIGH COURT OF JUDICATURE AT PATNA
SANJAY KAROL, J.
Kashish Developers Limited – Appellant
Versus
The State of Bihar – Respondent
Request Case No.12 of 2023
Decided on : 01-02-2023
Advocate Appeared:
For the Appellant :Mr. Lalit Kishore, Mr. Ranjeet Kumar, Advocate, Mr. Yogesh Kumar, Advocate, Mr. Mohit Srivastava, Mr. Ayush Kumar, Mr. K.Kaustubh, Mr. Shikhar Manil, Advocate
For the Respondent: Mr.Uday Shankar Sharan Singh
The court has the power to appoint an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 when the parties fail to settle a dispute through arbitration.
Headnote:
Arbitration - Appointment of Arbitrator - The court appointed an arbitrator to adjudicate disputes arising from a written agreement, invoking the powers under Section 11(6) of the Arbitration and Conciliation Act, 1996.
Fact of the Case:
The petitioner sought the appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, as the respondent failed to settle a civil dispute arising from a written agreement.
Finding of the Court:
The court appointed a learned Arbitrator to adjudicate the disputes arising from the agreement and directed the parties to cooperate and expedite the hearing.
Issues: Appointment of Arbitrator, Existence of Dispute, Cooperation of Parties, Limitation
Ratio Decidendi: The court's decision was influenced by the existence of a written agreement with an arbitration clause, the failure of the respondent to appoint an arbitrator, and the need for expeditious resolution of the dispute.
Final Decision: The court appointed a learned Arbitrator to adjudicate the disputes arising from the agreement and directed the parties to cooperate and expedite the hearing.
JUDGMENT :
1. Heard learned counsel for the parties.
2. This application has been moved seeking appointment of an Arbitrator invoking the powers of this Court under Section 11(6) of the Arbitration and Conciliation Act, 1996.
3. Petitioner and the respondent entered into a written agreement dated 24.06.2017 (Annexure-1, page-22). The said agreement contains an arbitration Clause-25 (page-126). The petitioner, invoked the arbitration clause but to no avail.
4. It is pleaded that the respondents have not settled the dispute till date. The dispute is civil in nature, arising out of the agreement dated 24.06.2017.
5. Today, there is no dispute about-(a) the legality, validity and binding effect of the written agreement dated 24.06.2017 entered into between the parties to the lis; (b) the existence of arbitration clause contained therein; (c) the existence of dispute(s) arising there from; (d) the dispute arisen out of the agreement being civil in nature; (e) no legal impediment in the adjudication of the dispute by the learned Arbitrator; (f) Petitioner having exhausted the channel available for resolution of the dispute; (g) the respondent having failed to appoint an Arbitrator pursuant to the invocation of the arbitration clause by the petitioner.
6. As such, Hon’ble Mr. Justice S.J.Mukhopadhyay, former Judge, Supreme Court of India (Mobile No. 8800555332) is appointed as learned Arbitrator to adjudicate all disputes arising out of agreement dated 24.06.2017 entered into between the parties to the lis. All pleas and issues raised, on merits, are left open to be considered and decided by the learned Arbitrator. Learned Arbitrator shall be entitled to fee as per the schedule of the Act. Since the dispute arises out of an agreement of the year 2017, the hearing be expedited. Parties undertake to fully cooperate and not take any unnecessary adjournment. The issue of limitation, if any, is left open to be raised before the learned Arbitrator. It is expected of the learned Arbitrator to decide the issues expeditiously. Joint Registrar (List) is directed to communicate the order to the learned Arbitrator.
7. Learned counsel for the parties also undertake to communicate the order to the learned Arbitrator. In fact, they volunteered to appear before him, through digital mode/physical mode on 20.02.2023 and apprise him of the passing of the order.
8. Parties shall file their statement of claims before the learned Arbitrator on such date of hearing which he may fix, as per mutual convenience.
9. The Request Petition stands disposed of in the above terms.
10. Interlocutory Application(s), if any, shall stand disposed of.
