The New India Assurance Co. Ltd vs M/S. Soosree Plastic Industries ...
2022 Latest Caselaw 1768 Ori

             IN THE HIGH COURT OF ORISSA AT CUTTACK

                             ARBA No.14 Of 2010
                            (Through hybrid mode)

        The New India Assurance Co. Ltd.       ....          Appellants
        and others
                                               Mr. S.S. Rao, Advocate

                                   -versus-

        M/s. Soosree Plastic Industries Pvt.   ....         Respondent

Ltd.

                                                        Mr. Milan
                                                         Kanungo,
                                                       Sr. Advocate



                  CORAM: JUSTICE ARINDAM SINHA
Order                             ORDER
No.                              10.03.2022

  42.   1.      Mr. Rao, learned advocate appears on behalf of appellants and

submits, by impugned judgment dated 27th February, 2010 his clients'

challenge to the award was rejected. He refers to record of

submissions in order dated 13th January, 2017, made by coordinate

Bench. Three points were made. Firstly, appointment of the arbitrator

was itself illegal. Secondly, the claim was barred by limitation and

thirdly, amount awarded is exorbitantly excessive. Court observes that

challenge to the award may not be sustained on the third point, on

exorbitance. That would be matter of merits and cannot be gone into

under section 34, Arbitration and Conciliation Act, 1996.

// 2 //

2. On the first point Mr. Rao submits, condition no.13 in the

contract was arbitration agreement. The appointment of sole arbitrator

was to be in writing by the parties, failing which the party invoking

arbitration would appoint one arbitrator and the other party, the other.

The two appointees were to appoint the third arbitrator/umpire. This

was not done. Instead the reference was on appointment of arbitrator

in the manner ruled by the arbitrator on his jurisdiction, that agreement

of parties was recorded by the Consumer Forum, as a consequence of

which the consumer complaint proceeding was dropped.

3. On query from Court regarding parties ability or freedom to

contract including novation, he prays for adjournment to make further

submissions.

4. Mr. Kanungo, learned senior advocate appears on behalf of

respondent.

5. List on 22nd March, 2022.

(Arindam Sinha) Judge Sks