The judgment established that an arbitrator must be impartial and that failure to adhere to legal provisions regarding arbitration can invalidate an award.

JUDGMENT

1. Since the controversy involved in both the matters is one and same and arguments were also made simultaneously by the respective parties, therefore, they are being decided by this common judgment.

2. Heard learned counsel for the respective parties and have also carefully gone through the record.

S.B. Civil Miscellaneous Appeal No. 2355/2018:-

3. By way of the present Civil Misc. Appeal, the appellants have prayed for the following reliefs:-

"It is, therefore, most humbly prayed that your Lordships may graciously be pleased to accept and allow the appeal and kindly be pleased to quash and set aside the judgment and decree dated 04.12.2017 passed by the Additional District Judge No.7, Jaipur Metropolitan, Jaipur in Arbitration Case No.13/2013 (CIS No.1216/2014) and be pleased to restore the Award dated 15.10.2012 passed by the Sole Arbitrator in Arbitration Claim Case No.130/2012 to meets the ends of justice.

Any other direction or order which your Lordships deem fit and proper in the facts and circumstances of the case in favour of the appellant-Corporation be kindly passed."

4. Learned counsel for the appellants contended that on 30.07.2007, applications/tenders were invited by the appellant/ Non-Claimant/Rajasthan State Road Transport Corporation (for short, 'the Corporation') regarding display of advertisement on the Corporation's buses. It was stated in the claim that earlier the predecessor company of the claimant/respondent, namely M/s Synergy Ceramics Pvt. Ltd. filed an application for participating in the bid process by submitting its bid, wherein it was found a highest bidder. It was further stated in the claim that vide letter dated 18.06.2007, M/s Synergy Ceramics Pvt. Ltd. was asked to deposit the license fee of Rs. 21,24,800/- through a demand draft as also to submit requisite bank guarantee in the sum of Rs. 1,27,48,800/-. In pursuance thereof, M/s Synergy Ceramics Pvt. Ltd. submitted a cheque and also furnished bank guarantee bond. It was further submitted that M/s Synergy Ceramics Pvt. Ltd. was given license by the appellant-Corporation by letter dated 23.06.2007 for the period from 26.06.2007-25.06.2010, as claimed in the claim petition. M/s Synergy Ceramics Pvt. Ltd. changed its name as M/s Synergy Advertising Pvt. Ltd. under Section 23 of the Companies Act and accordingly informed about the same to the Corporation vide letter dated 23.06.2007. After change of the name of firm, the appellant-Corporation by order dated 26.06.2007 had given the license to M/s Synergy Advertising Pvt. Ltd. for the period from 11.07.2007 to 10.07.2010 and it was provided with a copy of contract executed between M/s Synergy Advertising Pvt. Ltd. and appellant- Corporation on 06.08.2007. It was further submitted by the claimant in the claim petition that the appellant-Corporation failed to fulfill the terms and conditions of the contract and further, for the purpose of display neither the clean buses were made available nor the place for advertisement was provided and as a result of which, the claimants suffered financial losses. For the aforesaid reasons, the claimant-respondent had given a written proposal not to perform the work. It was claimed that the Corporation terminated the contract by order dated 12.05.2008. In the above circumstances, a claim petition came to be filed by the claimant-respondent for payment of Rs.2,97,38,802/- against the Corporation.

5. It was further asserted that the appellant-Corporation resisted the claim petition by filing reply and raised preliminary objections, inter-alia, stating therein that in the bid proceedings, M/s Synergy Ceramics Pvt. Ltd. submitted its tender document and the Corporation by letter dated 23.06.2007 appointed the said firm as its licensee and thereafter in the amended process M/s Synergy Advertising Pvt. Ltd. was appointed the licensee, which submitted the bank guarantee bond and thus, the contract dated 03.08.2007 was duly executed between the Corporation and M/s Syner