[2025:RJ-JP:19554]

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR S.B. Arbitration Application No.5/2024 M/s Matoshree Filling Station, Village Sewarampura On Sh-2, Chaksu, Jaipur Through Its Proprietor Smt. Shashi Gothwal.

----Petitioner Versus

1. The Chief Divisional Retail Sales Manager, Indian Oil Corporation Ltd. Jaipur Division Office, 1St Floor, LIC Investment Building, Phase-II, Near Ambedkar Circle, Bhawani Singh Road, Jaipur-302005

2. The Executive Director, Indian Oil Corporation Ltd, Indian Oil Bhawan, Ashok Chowk, Adarsh Nagar, Jaipur- 302004

3. The Director, (Marketing), Indian Oil Corporation Ltd, Indian Oil Bhawan, G-9, Ali Yawar Zang Marg, Bandra (East), Mumbai-400050 ----Respondents For Petitioner(s) : Mr. Devi Dutt Sharma For Respondent(s) : Mr. Sandeep Pathak JUSTICE ANOOP KUMAR DHAND

Order

08/05/2025

1. The instant arbitration application under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act of 1996”) has been filed by the applicant for appointment of an arbitrator to resolve the dispute between the parties arising out of the agreement dated 19.04.2011, which contains the arbitration clause reads as under:-

"62. Arbitration:

(a) Any dispute or difference of any nature whatsoever, any claim, cross claim, counter claim or set-off or regarding any right, liability, act, omission or account of any of the parties hereto arising out of or in relation to this agreement shall be referred to the sole arbitration of the Director (Marketing) of the Corporation who may either himself act as the Arbitrator or nominate some other officer of the Corporation to act as the Arbitrator. The dealer will not be entitled to raise any objection to any such Arbitrator on the ground that the Arbitrator is an officer of the Corporation.

(b) In the event of the Arbitrator whom the matter is originally referred being transferred, he shall be entitled to continue the arbitration proceedings notwithstanding his transfer unless the Director(Marketing) at the time of such transfer or at any time thereafter, designates another person to act as Arbitrator in his place in accordance with the terms of this agreement.

(c) In the event of the arbitrator, to whom the matter is originally referred vacating his office or being unable or refusing to act for any reason, the Director(Marketing) at the time of vacation of office or inability or refusal to act, shall designate another person to act as Arbitrator in accordance with the terms of this agreement.

(d) The arbitrator newly nominated by the Director (Marketing) under clause (b) or under clause (c) above, shall be entitled to proceed with the reference from the point at which it was left by his predecessor.

(e) It is an express term of this contract that no person other than the Director(Marketing) or a person nominated by such Director (Marketing) or a person nominatee by such director(Marketing) or a person nominated by such director(Marketing) of the Corporation as aforesaid shall act as Arbitrator hereunder. If for any reason, Director (Marketing) is unable or unwilling or refuses or fails to act as Arbitrator or nominate an Arbitrator then the matter shall not be referred to arbitration at all.

(f) The award of the arbitrator so appointed shall be final conclusive and binding on all parties to the agreement subject to the provisions of the Arbitration Act, 1940 or any statutory modification or re- enactment thereof and the rules made there under for the time being in force shall apply to the arbitration proceedings under this clause.

(g) The award shall be made in writing and published by the arbitrator within two years after entering upon the reference or within such extended time not exceeding one further year as the parties shall be writing agree. The parties hereto shall be deemed to have irrevocably given their consent to the Arbitrator to make and publish the award within the period referred to hereinabove and shall not be entitled to rai