2018 Supreme(Online)(KER) 44777
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE SHAJI P.CHALY
MONDAY ,THE 17TH DAY OF SEPTEMBER 2018 / 26TH BHADRA, 1940
WP(C).No. 28100 of 2015 & A.R.No.29 of 2016
PETITIONER/S:
AEGAN BATTERIES
BHAGAWATHI TOWERS, NO.52, 4TH FLOOR,
33RD CROSS ROAD, 4TH BLOCK, JAYANAGAR,
BANGALORE - 560 011
REPRESENTED BY AUTHORISED SIGNATORY R.MUMMURTHY.
BY ADV. SMT.K.P.SANTHI
RESPONDENT/S:
1
BHARAT SANCHAR NIGHAM LIMITED
OFFICE OF THE CHIEF GENERAL MANAGER, TELECOM,KERALA
CIRCLE, TRIVANDRUM - 695 033
REPRESENTED BY THE CHIEF GENERAL MANAGER, TELECOM.
2
THE CHIEF GENERAL MANAGER TELECOM
OFFICE OF THE CHIEF GENERAL MANAGER, TELECOM,
KERALA CIRCLE, TRIVANDRUM - 695 033.
BY SRI.K.S.MANU, SC, BSNL
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
17.09.2018, ALONG WITH AR NO. 29 OF 2016, THE COURT ON THE SAME
DAY DELIVERED THE FOLLOWING:
WP(C).No. 28100 of 2015 & A.R.No.29 of 2016
2
This writ petition is filed by the petitioner seeking the following
reliefs:-
“(i)
issue a writ of certiorari or such other writ, direction or order
quashing Exhibit P5 as arbitrary, illegal and unconstitutional;
(ii)
issue a writ of mandamus or such other writ, direction or
order compelling the respondents not to enchash the bank
guarantee until the damages are properly quantified in the
arbitration proceedings.”
2.
Apparently, from the pleadings put forth by the petitioner in
this writ petition it is evident that, the subject issue raised by the
petitioner is an arbitrable dispute in accordance with the agreement
executed by and between the parties. In fact the respondents have
appointed an arbitrator, but at that point of time, Arbitration and
Conciliation Act, 1996 was amended and Seventh Schedule is introduced
to the statute and when it is read along with Section 12 especially sub
section (5) thereto, any interested persons functioning as arbitrators is
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prohibited and it is thereupon that petitioner has filed the aforesaid
arbitration request before this Court seeking to appoint any third
persons as Arbitrator. In my considered view, if the arbitration request is
disposed of appropriately, writ petition can also be disposed of, in terms
of the said disposal.
A.R.No.29 of 2016
The applicant is a company registered under the Indian Companies
Act, manufacturing lead acid storage batteries. Annexure I agreement is
executed by and between the petitioner and the respondent for supply of
the batteries manufactured by the petitioner. In the said agreement
parties have agreed that, in the event of any dispute by and between the
parties it will be resolved by resorting to alternative dispute resolution
mechanism provided as per Clause 20, which read thus:-
“20.ARBITRATION
20.1 In the event of any question, dispute or difference arising
under this agreement or in connection therewith (except as to the
matters, the decision to which is specifically provided under this
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agreement) the same shall be referred to the sole arbitration of the
CGMT, BSNL, Kerala Circle Trivandrum or in case his designation is
changed or his office is abolished, then in such cases to the sole
arbitration of the officer for the time being entrusted (whether in
addition to his own duties or otherwise) with the functions of the
CGMT, BSNL, Trivandrum or by whatever designation such an officer
may be called (hereinafter referred to as the said officer), and if the
CGMT, BSNL, Kerala Circle Trivandrum or the said officer is unable or
unwilling to act as such, then to the sole arbitration of some other
person appointed by the CGMT, BSNL, Trivandrum or the said officer.
The agreement to appoint an arbitrator will be in accordance with the
Arbitration and Conciliation Act, 1996 as amended from time to time.
There will be no objection to any such appointment on the ground that
the arbitrator is a Government Servant or that he has to deal with the
matter to which the agreement relates.
Or that in the course of his duties as a Government Servant he has
expressed his views on all or any of the matters in dispute. The award
of the arbitrator shall be final and binding on both the parties to the
agreement. In the event of such an arbitrator to whom the matter is
originally referred, being transferred or vacating his office or being
unable to act for any reason whatsoever, the CGMT, BSNL, Kerala Circle
Trivandrum or the said officer shall appoint another person to act as
an arbitrator in accordance with terms of the agreement and the
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persons so appointed shall be entitled to proceed from the stage at
which it was left out by his predecessors.
20.2 The arbitrator may from time to time with the consent of
both the parties enlarge the time frame for making and publishing the
award. Subject to the aforesaid, Arbitration and Conciliation Act, 1996
and the rules made there under, any modification thereof for the time
being in force shall be