IN THE HIGH COURT OF MADHYA PRADESH AT INDORE BEFORE HON'BLE SHRI JUSTICE SUBODH ABHYANKAR th ON THE 29 OF JULY, 2024 Arbitration Case No. 39 of 2023 M/s Graffiti Infra Projects Pvt. Ltd.

vs.

Aavantika Gas Limited & Another Dated : 29-07-2024 Shri Aarush Bhandari, learned counsel for the applicant.

Shri Prashant Upadhyay, learned counsel for the respondents.

1. This petition has been filed by the applicant under Section 11(6) of the Arbitration and Conciliation Act, 1996, for appointment of an Arbitrator for adjudication of the dispute between the parties.

2. Counsel appearing for the applicant has submitted that admittedly, a work contract was entered into between the applicant and the respondent-Aavantika Gas Limited on 31.8.2019, and the applicant’s contention is that the applicant-Company has completed the work on 21.1.2020, but a dispute has arisen regarding pending dues, amounting to approximately around Rs.11 Lakhs. Thus, as per the Arbitration Clause contained in 30 of the Arbitration Agreement, an Arbitrator may be appointed.

3. Counsel appearing for the respondents has opposed the prayer and it is submitted that there is no dispute between the parties as the respondents have already admitted all the claims except the penalty Signature Not Verified amount for a sum of Rs.1,76,586/-. Thus, no case for appointment of Arbitrator is made out.

4. Having considered the rival submissions, perusal of the documents filed on record, including the Arbitration Agreement, Clause 30 of which reads as under:-

“30 SETTLEMENT OF DISPUTES

30.1 The rules of procedure for arbitration proceedings shall be as per Indian Arbitration and Conciliation Act 1996 or as amended.

30.2 If any dispute or difference arising between the Parties in respect of or concerning or connected with the interpretation or implementation of this Agreement or otherwise arising out of this Agreement, the parties hereto shall promptly and in good faith negotiate with a view to bring out and amicable resolution and settlement.

30.3 If, after thirty (30)days, the parties have failed to resolve their dispute or difference by such mutual consultation, then either the Owner or the Supplier may give notice to the other party of its intention to commence arbitration, as hereinafter provided, as to the matter in dispute, and no arbitration in respect of this matter may be commenced unless such notice is given.

30. 4 In the event, no amicable resolution or settlement is reached within a period of 30 days from the date on which such dispute or difference arose, such dispute or difference shall be referred for adjudication by sole Arbitrator to be appointed by the Managing Director (MD) of AGL, in accordance with the Arbitration and Conciliation Act,1996 and rules made the re under or any statutory modification in case the Arbitrator so appointed is related to AGL in any manner whatsoever.

30.5 The Arbitration proceedings shall be held in Indore and shall be conducted in English Language. The decision of such arbitration shall be binding and conclusive upon the Parties. The Parties to the arbitration shall equally share the costs and expenses of any such arbitration.

30.6 It is hereby clarified that the Courts at Indore alone shall have jurisdiction to try and entertain any and all suits or other proceedings in respect of, relating to or otherwise arising out of this Agreement.

30.7 Notwithstanding any reference to arbitration herein, the parties shall continue to perform the irrespective obligations under the Agreement unless they otherwise agree.”

(emphasis supplied)

5. It is also found that the dispute between the parties could not Signature Not Verified be resolved through mutual agreement, and a notice for appointment of an Arbitrator has also been sent by the applicant to the non- applicant on 26.12.2022, Thus, apparently a dispute has existed between the parties for whatever be the amount, in such circumstances, as per the arbitration clause, the same deserves to be referred to the arbi