JUDGMENT :

1. The instant arbitration application has been filed by the applicant-Company under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘Act of 1996’) claiming the following reliefs:-

“It is therefore, humbly prayed on behalf of the Applicant that the instant application under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of Arbitrator may kindly be accepted and Mr. Shiv Singh Chauhan, Ex R.H.J.S., Distt. & Session Judge (Retd.), SOLEARBITRATOR, 285, Block ‘A’, Bhuwana Extension, Chittarakoot Nagar, Udaipur (Raj.) -313001, 9414796970, 8209970143 or any other appropriate person, which this Hon’ble Court may deem fit and proper may kindly be ordered to be appointed as Arbitrator to resolve the aforesaid dispute in the interest of justice.

Any other order(s) or direction(s) which is deemed just and proper by the Hon’ble Court in the facts and circumstances of the case may also kindly be passed in favour of the Applicant;”

2. The applicant-Company was incorporated under the provisions of the Companies Act, having its main objectives, to carry on business of manufacturing, engineering, processing etc., and dealing in all kinds of plants, machines and equipment. The respondent-Company offered the applicant its (respondent’s) distributorship; thereafter, the applicant and the respondent entered into a pre-drafted agreement of distributorship on 27.04.2018, wherein the applicant was appointed as a Distributor on a non-exclusive basis on the terms and conditions.

2.1. Thereafter, certain disputes arose between the applicant and the respondent, whereupon, the applicant sent a notice dated 10.02.2021 for appointment of an independent arbitrator, as per Article 10 of the Agreement in question. The respondent replied to the said notice on 12.03.2021, while refusing to give its consent for appointment of arbitrator.

2.2. Article 10 of the agreement in question is reproduced as hereunder:-

“ARTICLE 10 DISPUTE RESOLUTION AND ARBITRATION

10.1 In the event of any dispute or difference arising out of or concerning this Agreement such dispute shall be subject to resolution by arbitration before a sole arbitrator to be appointed jointly by both the Parties in accordance with the Arbitration and Conciliation Act, 1996 and any modification in the said Act for the time being in force. The language of the arbitration shall be English and the decision of the Arbitrator/s shall be final and binding on the parties. The venue of Arbitration shall be Pune. The laws of India shall govern this Agreement. Subject to the foregoing, both Parties irrevocably submit to the exclusive jurisdiction of the civil Courts in Pune, for any action, proceeding which would be concerned or related to this Agreement or anything done there under.

10.2 During the pendency of any arbitration, (a) each party shall continue to perform its obligations hereunder and (b) neither party shall exercise any remedies hereunder arising by virtue of the matters in dispute.

10.3 In any case of decision for discontinuation of business dealing by either side The Franke Fabel India P. Ltd. Being the company will be owner of stock lying at distributor end, as such subject to settle account on each model wise last dispatch value in credit or debit by paying amount in account within a period of 15 days only by the date of effect.”

3. Learned counsel for the applicant submitted that the dispute had arisen between the applicant and respondent with regard to breach of the agreement in question and the respondent always failed to perform its part of the obligation.

3.1. Learned counsel further submitted that the business between the applicant and the respondent was transacted at Udaipur (Rajasthan), and the agreement in question was accepted and signed by the both parties at Udaipur (Rajasthan), therefore, the same comes under the jurisdiction of this Hon’ble Court.

3.2. Learned counsel also submitted that the agreement in questi