IN THE HIGH COURT AT CALCUTTA
KRISHNA RAO, J.
Bharat Vanijya Eastern Private Limited - Petitioner
Versus
State of West Bengal - Respondent
IA No. GA 8 of 2020 (Old No. GA 683 of 2020) In CS No. 81 of 2002
Decided On : 17-03-2023
Civil Procedure Code, 1908 – Section 89 – Order 2 Rule 2 - Arbitration and Conciliation Act, 1996 – Section 14, 15, 34, 37 – Arbitration - Civil Suit - Appointment of new Arbitrator - Held, sole Arbitrator was appointed with the consent of both the parties - The consent terms do not contain any ‘provisions’ or ‘procedure’ for appointment of arbitrator - Under Section 11(5) of the Act, failing an agreement between the parties on a procedure for appointing the arbitrator, in an arbitration with a Sole Arbitrator, a party desirous of appointing arbitrator must make a request to other party to agree to an appointment within thirty days from receipt of the request, failing which appointment shall be made by the Chief Justice or his designate - The petitioner has not made any request to respondent for appointment of an Arbitrator - The application by way of this Notice of Motion in disposed of Suit in which the original Arbitrator was appointed under consent terms, is clearly misconceived and not maintainable – G.A. dismissed.
JUDGMENT :
Krishna Rao, J.
1. The petitioner has filed the instant application for appointment of new Arbitrator to proceed with the arbitration proceeding from the stage, it was left by the previous arbitrator and to make and publish an Award within six months or in the alternative the suit be reviewed and be transferred to Commercial Division of this Court and to proceed with from the stage suit was left at the time of passing of the order dt. 11th September, 2008.
2. Initially the petitioner had filed a Civil Suit No. 81 of 2002 against the respondent praying for following reliefs :
(b) Decree for Rs. 20,72,36,568/-
(c) Alternatively, an enquiry into the damages suffered by the plaintiff and decree for the amount found on such enquiry
(d) Interest;
(e) Costs;
(f) Further and other reliefs;.”
3. During pendency of the suit, the Learned Advocate for the petitioner had forwarded a letter together with a draft application under Section 89 of the Code of Civil Procedure, 1908 for referring the dispute pertaining to the suit before the Learned Arbitrator to the Learned Advocate for the respondent on 28th July, 2008. In reply to the abovementioned letter, the Chief Engineer (NH), Government of West Bengal, Public Works (Roads) Directorate, Audit Branch vide his Memo No. 1C-2007/645-R/ADT dt. 26th August, 2008 had forwarded approval for appointment of Arbitrator to the Learned Advocate for the respondent and the Learned Advocate for the respondent had forwarded the same to the Learned Counsel for the petitioner with the request to move the said application after notice to the respondent. After approval of the proposal for appointment of Arbitrator, the petitioner has filed an application in C.S. No. 81of 2008 being G.A. No. 3037 of 2008 and on 11th September, 2008, this Court had passed the following order :
In view of such agreement, this application made under Section 89 of the Code, of Civil Procedure, 1908 is disposed of. There will be an order in terms of prayers (a), (b) and (c) by agreement of parties.
GA No.3037 of 2008 is disposed of and the suit being CS No. 81 of 2002 should also be treated as disposed of.”
4. In terms of order dt. 11th September, 2008, the Learned Arbitrator had initiated Arbitration proceedings and on 26th August, 2011 had published an Award. Being aggrieved and dissatisfied with the Award, the respondent had preferred an application under Section 34 of the Arbitration and Conciliation Act, 1996 before this Court being AP No. 1087 of 2011 for setting aside the Award dt. 26th August, 2011. By a judgment dt. 4th January, 2017, this Court had set aside the Award with respect of the claim nos. 2, 4, 9 and 10 and the application under Section 34 of the Act of 1996 was allowed in part.
5. Both petitioner as well as the respondent have preferred an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 against the Judgment dt. 28th August, 2011 before the Hon’ble Division Bench of this Court being APO No. 398 of 2017 (State of West Bengal & Ors. Vs. Bharat Vanijya Eastern Private Limited) and APO No. 419 of 2017 (Bharat Vanijya Eastern Private Limited Vs. The State of West Bengal). The Hon’ble Division Bench had disposed of the said appeals on 7th November, 2019 by passing the following order :
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The main legal point established in the judgment is the significance of parties' consent in appointing arbitrators and the consequences of their conduct in adhering to the arbitration agreement.
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