Patna High Court
Surya Alloy Industries Limited vs The Union Of India on 1 February, 2022
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.8924 of 2020
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Surya Alloy Industries Limited a Company incorporated under the Companies
Act, 1956, represented through its Company Secretary, having its registered
Office at 1/1, Camac Street, 3rd Floor, Kolkata 700016, through its authorized
signatory Sujoy Banerjee, aged about 51 years, Male, Son of Late Kartik
Chandra Banerjee at present residing at Manaspur, Bandle, P.S. Chinchura,
District Hoogly, West Bengal.
... ... Petitioner/s
Versus
1. The Union of India through the Secretary, Ministry of Railways, having
office at Rail Bhawan, Raisina Road, New Delhi.
2. The Principal Chief Material Manager, at 1st floor, Stores Branch,
Administrative Building, Rail Wheel Plant, Bela, P.O. Arvindnagar, District
Saran, Bihar.
3. Deputy Chief Material Manager - II, Office of the Principal Chief Material
Manager, 1st Floor, Stores Branch, Administrative Building, Rail Wheel
Plant, Bela, P.O. Arvindnagar, District Saran, Bihar.
4. The Assistant Material Manager, (Depot), Office of the Principal Chief
Material Manager, working for gain at 1st floor, Stores Branch,
Administrative Building, Rail Sheet Plant, Bela, P.O. Arvindnagar, District
Saran, Bihar.
5. Eastern Railway Service through the General Manager, Working for gain at
17, Netaji Subhash Road, Fairlie Place, Kolkata 700001.
6. RITES Ltd. a company incorporated under the Companies Act, 1956,
Service through its Chairman and Managing Director, having its Eastern
Regional Office at Central Metro Station Building, 56, C R Avenue, 2nd
floor, Kolkata 700012.
... ... Respondent/s
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Appearance :
For the Petitioner/s : Mr. Prabhat Ranjan, Advocate
For the Respondent/s : Dr. K.N. Singh, ASG
Mr. Prabhat Kumar Verma, Advocate
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CORAM: HONOURABLE MR. JUSTICE RAJAN GUPTA
and
HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
ORAL JUDGMENT
(Per: HONOURABLE MR. JUSTICE RAJAN GUPTA)
Date : 01-02-2022
The matter has been heard via video conferencing.
Patna High Court CWJC No.8924 of 2020 dt.01-02-2022
The petitioner has sought quashing of a show cause
notice. According to him, the same has been issued ex-parte
quantifying the amount recoverable from him as Rs. 66,32,780/-
apart from raising other ancillary disputes. Admittedly, arbitration
clause exist between the parties which is Clause 2900 of the
Indian Railway Standard Conditions of Contract. Apprehension of
the petitioner is that the arbitration clause is not in consonance
with the existing law as the sole arbitrator has to be the gazatted
railway officer to be appointed by the General Manager.
However, counsel appearing for the Railways submits
that in terms of Section 12 of the Arbitration and Conciliation Act,
a panel has been formed by the Railways. In case, the petitioner
makes an application before the Railways, an arbitrator out of the
said panel shall be appointed.
Mr. Prabhat Ranjan, learned counsel for the petitioner is
satisfied with the statement.
We, thus, dispose off the writ petition with an
observation that in case the petitioner files an application before
the Railway authorities for appointment of an Arbitrator within
four weeks from today, appropriate decision shall be taken by the
Railways within two weeks thereafter.
Patna High Court CWJC No.8924 of 2020 dt.01-02-2022
Till then, no coercive steps shall be taken against the
petitioner.
However, immediately upon appointment of an
Arbitrator, the petitioner shall be at liberty to make an application
before the Arbitrator for any interim relief, which he may seek.
(Rajan Gupta, J)
(Mohit Kumar Shah, J)
P. Kumar
AFR/NAFR
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