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IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA ON THE 8th DAY OF SEPTEMBER, 2021 BEFORE HON’BLE MR. JUSTICE SANDEEP SHARMA ARBITRATION CASE NO. 65 OF 2020 Between:

M/S JAGSON INTERNATIONAL LTD., A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT 3RD FLOOR, VANDANA BUILDING, 11, TOLSTYOY MARG, NEW DELHI-110001, THROUGH ITS DULY AUTHORIZED REPRESENTATIVE SHRI MADAN SHARMA ….PETITIONER (BY MR. B.C. NEGI, SENIOR ADVOCATE WITH MR. Y.P. SOOD, ADVOCATE)

AND

1. STATE OF HIMACHAL PRADESH THROUGH PRINCIPAL SECRETARY (TOURSISM), GOVERNEMNT OF HIMACHAL PRADESH, SHIMLA-171002.

2. DIRECTOR, TOURISM & CIVIL AVIATION, GOVERNMENT OF HIMACHAL PRADESH, SHIMLA-9 ….RESPONDENTS (BY MR. MR. DESH RAJ THAKUR, ADDITIONAL ADVOCATES GENERAL WITH MR. KAMAL SHARMA & MR.

NARENDER THAKUR, DEPUTY ADVOCATES GENERAL)

Whether approved for reporting?.

This case coming on for orders this day, the Court passed the following:

O R D E R

By way of instant petition filed under Section 9 of the Arbitration and Conciliation Act, 1996, interim direction has been sought against the respondents, restraining them from taking any coercive action against the petitioner pursuant to notice dated 5.9.2020 (Annexure P-3) including cancellation of Concession Agreement or any further action pursuant thereto.

2. Though reply to the petition stands filed on behalf of the respondents, but on 27.4.2021, learned counsel for the petitioner informed this court that since notice, praying therein for appointment of Arbitrator already stands served upon the respondents, necessary direction may be issued to the respondents-defendants to do the needful expeditiously.

3. Mr. Desh Raj Thakur, learned Additional Advocate General while placing on record communication dated 9/11.8.2021 addressed to the Director, Tourism & Civil Aviation, Himachal Pradesh, Shimla-09, contends that respondents have already accepted the prayer made on behalf of the petitioner for appointment of Arbitrator and Mr. Ajay Kumar Garg, Retired Chief Engineer from HPPWD, Ashiana Elysium Hill near Radison Hotel Goodwood Shimla, H.P. has been appointed as Arbitrator in the instant case.

4. Though on account of the fact that acceding to the request made by the petitioner, respondents have appointed the sole Arbitraror, as named herein above, nothing remains to be adjudicated in the present petition, however, Mr. B.C. Negi, Senior Advocate, while referring to Section 12 of the Arbitration and Conciliation Act, contends that as per provisions of sub-Section 5 of Section 12 of the Act, no person having direct or indirect relationship with any of the party, can be appointed as Arbitrator. He states that while serving notice to the department for appointment of an Arbitrator, petitioner has already prayed for appointment of Mr. Justice A.K.Goel (Retd.) as an Arbitrator and as such, instead of Mr. Ajay Kumar Garg, Retired Chief Engineer from HPPWD, Mr. Justice A.K.Goel, retired Judge of this Court, may be appointed as Arbitrator. Mr. Desh Raj Thakur, learned Additional Advocate General, while fairly accepting the aforesaid request having been made by the learned Senior Counsel, contends that respondent shall have no objection in case, Mr. Justice A.K. Goel (Retd.) is appointed as an Arbitrator.

5. Consequently, in view of the above, present petition is disposed of as having rendered infructuous, however, as per agreement arrived inter-se parties, respondents are directed to make formal request to Mr. Justice A.K. Goel (Retd.) to act as an arbitrator in terms of provisions contained under Section 11 of the Act. In the event of his accepting the proposal, he is required to make disclosure in writing in terms of sub section 1 of Section 12 of the Act. It shall be open to the Arbitrator to determine his own procedure with the consent of the parties. Needles to say, Arbitrator shall be entitled to charge fee as prescribed under the Act. Award shall be made strictly as per the provisions of Arbitration & Conciliation Act, 1996, within six months. Needless to add that the Arbitrator shall pass a speaking order.

6. A copy of this order shall be made available to the Arbitrator, named above, by the Registry of this Court, within a period of two weeks, enabling him to take steps for commencement of the arbitration proceedings. Till the time, reference is made to the Arbitrator named herein above, interim order dated

13.10.2020, passed by this Court shall remain in force.

Copy dasti.

8th September, 2021 (Sandeep Sharma),

(manjit) Judge

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