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2007 Supreme(Del) 2678

IN THE HIGH COURT OF DELHI
Honble Judges: Sanjay Kishan Kaul, J.
Gujarat Bullion Refinery Pvt. Ltd. - Appellants
Vs.
Hindustan Copper Ltd. – Respondent
OMP No. 218/2007
Decided On: 03.12.2007

Advocates appeared:
For Appellant/Petitioner/Plaintiff: D. Moitra, Adv.
For Respondents/Defendant: Saurabh Ahuja, Adv.

Subject

Arbitration Law - Appointment of Arbitrator

Act Referred

ARBITRATION AND CONCILIATION ACT : S.5, S.11, S.13

Headnote

Arbitration and Conciliation Act, 1996

       Section 5, 11 & 13 - Seeking appointment of arbitrator--Disputes arose-- Arbitration clause invoked--Sole arbitrator appointed--Proceedings concluded but award could not be published--The very basis for arbitral proceedings as a method of adjudication of disputes was frustrated by such lapse of time--Court allowed the petition and the appointment of the new arbitrator and the commencement of arbitration proceedings stand revoked.

JUDGMENT

Sanjay Kishan Kaul, J.

1. The respondent-Company, a public sector undertaking, placed an order on the petitioner on 10.01.1990 for sale of copper from the location of the respondent at Khetri, Rajasthan. The agreement contained an arbitration clause providing for sole arbitration by the Chairman of the respondent or any other officer nominated by him. In the event of the arbitrator dying, neglecting or refusing to act or resigning or being unable to act for any reason, the Chairman of the respondent was authorized to appoint another arbitrator. The jurisdiction of the Courts was vested in either Calcutta or New Delhi Courts.

2. The Contract resulted in disputes between the parties and a petition was filed in this Court by the petitioner being OMP No. 100/1996. In the said matter an ex parte Order was passed on 07.05.1999 which was sought to be recalled on an application by the petitioner since the respondent had appointed one of its own officers Sh. T.P.Girish as the sole arbitrator. However, the said arbitrator proceeded with the matter.

3. The parties entered appearance but the proceedings could not be concluded. The Minutes of the Arbitration Proceedings of 27.04.2001 show that the arbitrator sought consent for extension of time and while the respondent granted its consent, the petitioner failed to give the consent. The arbitrator thus observed that the arbitration proceedings stand concluded. There was a silence on the part of the respondent thereafter for a period of more than six years.

4. The respondent apparently addressed a letter dated 22.02.2007 to the petitioner in the following terms: ?WHEREAS, Sh.T.P.Girish, Executive Director (Commercial), Hindustan Copper Limited, ?Tamra Bhavan, 1 Ashutosh Chowdhury Avenue, Kokata ? 700 019 was appointed as the Sole Arbitrator by the Chairman-cum-Managing Director, Hindustan Copper Limited vide Order dated 14.03.1995 to adjudicate the disputes and differences between the parties in connection with the above referred matter. AND WHEREAS, Sh. T.P.Girish, the Sole Arbitrator concluded the arbitration proceeding, but could not publish the Award. Now, on the request to continue the job of Sole Arbitrator for publishing the Award, the said Arbitrator has showed his inability to continue as Arbitrator due to his poor health and submitted his resignation letter dated 14.02.2007 from the post of Sole Arbitrator in the above matter. NOW, thereforeE, I, Satish C.Gupta, Chairman cum Managing Director, Hindustan Copper Limited, Tamra Bhavan, 1 Ashutosh Chowdhury Avenue, Calcutta ? 700 019 do hereby appoint Sh. D.N.Verma, Assistant General Manager (HR), Tamra Bhavan, 1 Ashutosh Chowdhury Avenue, Kolkata ? 700 019 in place of Sh. T.P.Girish as the Sole Arbitrator to adjudicate the said disputes as referred to above. Sh. Verma will start the arbitration proceedings from the stage where Sh. Girish, the earlier Arbitrator, left the same. The parties are directed to make further reference, if any, to the Sole Arbitrator.?

5. The aforesaid letter was not received by the petitioner as it was sent at an earlier address of the petitioner. The second letter at the new address was served under the cover of the letter dated 05.03.2007. The petitioner objected to the same and thereafter filed the present petition.

6. It is inter alias the case of the petitioner that for a period of six years no proceedings were filed before this Court seeking either the termination of the mandate of the earlier arbitrator or for appointment of a new arbitrator. The respondent has claimed that the earlier arbitrator never published the award and resigned only on 14.02.2007 when he retired from service. It is also claimed that the petitioner raised frivolous disputes in respect of the extension of time and the lapse of time cannot destroy the rights of the parties.

7. The legal position in respect of such matters has been discussed at length in the judgment of this Court in Laldee Private Limited v. Union of India







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