HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
Vinit Kumar Mathur, J.
M/s Raj Enterprises – Appellant
Versus
M/s Saksham Associates & Ors. – Respondents
S.B. Arbitration Application No. 16 of 2021
Decided On : 04-01-2022
Arbitration - Appointment of Arbitrator - The court allowed the application under Section 11 of the Arbitration and Conciliation Act, 1996 and appointed an arbitrator to adjudicate upon the dispute between the parties in accordance with the arbitration agreement.
Fact of the Case:
The applicant filed an application under Section 11 of the Arbitration and Conciliation Act, 1996 for the appointment of an arbitrator to resolve a dispute arising from non-payment of the amount due to the applicant by the respondent Nos.1 and 2.
Finding of the Court:
The court found that there was an agreement between the parties containing an arbitration clause, and since the amount claimed by the applicant had not been repaid by the respondents, the dispute needed to be referred to an arbitrator.
Issues: The main issue was the non-payment of the amount due to the applicant, leading to a dispute between the parties, and the need for the appointment of an arbitrator to resolve the dispute.
Ratio Decidendi: The court's decision was influenced by the existence of an arbitration clause in the agreement between the parties and the failure to appoint an arbitrator despite the dispute arising.
Final Decision: The court allowed the application and appointed Ms. Pratishtha Dave as the sole arbitrator to adjudicate upon the dispute between the parties in accordance with the arbitration agreement and the provisions of the Arbitration and Conciliation Act, 1996.
JUDGMENT
Vinit Kumar Mathur, J. - The present application has been filed by the applicant under Section 11 of the arbitration and Conciliation act, 1996 for appointment of the arbitrator to resolve the dispute which has arisen between the applicant and the respondent Nos.1 and 2 on account of non-payment of the amount due to the applicant.
2. This Court after hearing learned counsel for the applicant issued notices to the respondents on 02/08/2021. as per the office report dated 23/09/2021, notices are reported to be served upon the respondent Nos.1 and 2. Despite service, nobody appeared before this Court on 02/12/2021, therefore, the matter was adjourned for 09/12/2021 but on 09/12/2021 also, nobody appeared, therefore, the matter was again adjourned for 16/12/2021. But on 16/12/201 again nobody appeared on behalf of the respondents. Thus, the matter was listed today but even today, nobody has appeared for the respondents, therefore, in these circumstances, this Court has no option but to proceed with the matter.
3. Heard the counsel and perused the material available on record.
4. Learned counsel for the applicant submits that the parties entered into an agreement - annexure-1 and as per the said agreement, there is an arbitration clause enumerated in Clause 6 which reads as under :-
6. arbitration.
5. any and all disputes/differences or claims arising under this agreement or out of or in connection with the execution, interpretation, performance, or non performance of this agreement or any or all of the foregoing shall be solely and finally settled by arbitration under the provisions of the arbitration and Conciliation act, 1996. all arbitration proceedings shall be conducted in the English language. Unless the disputing Parties agree upon a sole arbitrator within 30(Thirty) days of occurrence of any dispute, the sole arbitrator shall be appointed as per the provisions of the arbitration and Conciliation act, 1996 (the 'arbitral Tribunal')
6. The dispute arose between the parties and the applicant vide annexures 3 and 4 made correspondences and, thereafter vide notice dated 29/01/2021, the money advanced to the respondent Nos.1 and 2 was claimed back. When nothing was heard, a notice for referring the matter/claim of the applicant to the arbitration was made by the applicant vide annexure-6 dated 17/02/2021. Since, the arbitrator has not been appointed in the present case, therefore, this application under Section 11 of the act of 1996 has been made before this Court.
7. I have considered the submissions made at the Bar and gone through the documents placed before me. It is an admitted position that there was an agreement between the applicant and the respondent Nos.1 and 2 - annexures-1 which contains the arbitration clause and since the amount claimed by the applicant has not been repaid by the respondent Nos.1 and 2, therefore, the dispute arose between the parties, the matter was required to be referred to the arbitrator but no arbitrator has been appointed in the matter.
8. In the circumstances, the application is allowed.
9. Ms. Pratishtha Dave, advocate, R/o.House No.104/B Sector-6, Kudi Bhagtasani Housing Board, Opp. Shree Ji Vatika, Jodhpur is appointed as a sole arbitrator to adjudicate upon the dispute between the parties in terms of arbitration agreement and as per the Rajasthan Manual of Procedure for alternative Dispute Resolution, 2009, as amended up to date and also as per the provisions of arbitration and Conciliation act.
10. The record of the case may be transmitted to the Ms.Pratishtha Dave, advocate.
11. The above appointment is subject to the necessary disclosure under Section 12 of the act.
12. Needles to say that the fees of the arbitrator will be as per Schedule 1V of the arbitration and Conciliation act.
The main legal principle established in the judgment is the court's authority to appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 when a dispute arises and no arbi....
The court reaffirmed that the existence of an arbitration agreement is sufficient for the appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.
An application for appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 is maintainable despite previous delays, as no arbitral proceedings were initiated un....
The court appointed an arbitrator as the parties consented to arbitration under the existing arbitration clause, complying with statutory requirements.
The court's authority to appoint a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996.
Compliance with Section 21 for notice invoking the arbitration clause is necessary for arbitration proceedings to commence.
Pendency of proceedings before another tribunal does not preclude the Court from appointing an arbitrator under Section 11(6) of the Act of 1996.
Unilateral appointment of an Arbitrator is not acceptable, and an Arbitrator must be appointed in accordance with the arbitration agreement and the provisions of the Standard Conditions of Supply Ord....
Appointment of an arbitrator in instances where the respondent does not object to arbitration is valid under the Arbitration and Conciliation Act, emphasizing the importance of efficient dispute reso....
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