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RAJESH SHANKAR
KD Foods through its proprietor Smt. Gayatri Devi – Appellant
Versus
Union of India through the General Manager, East Central Railway, Hajipur, District- Vaishali (Bihar) – Respondent
JUDGMENT :
The present writ petition has been filed for quashing letter no. C.724/CV/DHN/2022 dated 31.03.2022 (Annexure-14 to the writ petition) issued by the Senior Divisional Commercial Manager, East Central Railway, Dhanbad (the respondent no. 4) whereby the said respondent has intimated the petitioner that the contract of catering/vending of Stall No.-2 situated at platform no. 1 of Dhanbad Railway Station (hereinafter referred as the said Stall) has been terminated by the competent authority forfeiting its security deposit of Rs.40,000/- due to non-payment of due license fee since 31.10.2021 and has asked the petitioner to remove structure of the said catering/vending stall immediately. Further prayer has been made for directing the respondents to appoint an arbitrator within one month to resolve the dispute and the operation of the letter dated 31.03.2022 may be stayed till passing of the award by the arbitrator.
2. Learned counsel for the petitioner submits that the respondent no.4 issued notice inviting applications for grant of license for the said Stall under Special Minor Unit (SMU) for Scheduled Caste (women) category for a period of 5 years. Pursuant to the said notice,
Parties must adhere to the detailed procedure for appointing an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, before seeking court intervention.
The court held that an arbitral award compelling the renewal of a determinable contract is legally unsustainable and suffers from patent illegality under Section 34 of the Arbitration and Conciliatio....
Unilateral appointment of arbitrators is impermissible under the Arbitration and Conciliation Act, ensuring independence and impartiality in arbitrator selection.
The court's jurisdiction under Section 11(6) of the A&C Act is limited to determining the existence of an arbitration agreement, while issues of limitation and other contentious disputes are to be de....
The court emphasized that the jurisdiction for the petitions lay in Delhi, and the respondent's unilateral appointment procedure for arbitrators was impermissible under the law.
The court upheld the arbitrator's decision on breach of contract, illegality of termination, and grant of damages, while denying the claim for interest.
The designation of a venue for arbitration also constitutes the seat, thus excluding jurisdiction of other courts as per party autonomy principles.
The petitioner, as a commission vendor, has no legal right to assert that he can continue to act as a commission agent from the stall located at Platform no. 1 and to assail the decision of the respo....
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