Argibiotech Industries Limited vs Rajasthan State Ganganagar Sugar ...
2021 Latest Caselaw 7101 Raj/2

       HIGH COURT OF JUDICATURE FOR RAJASTHAN
                   BENCH AT JAIPUR

              S.B. Arbitration Application No. 69/2020

Agreebiotech Industries Limited, Having its Registered Office At
Sp-156, RIICO, Industrial Area, Ajitgarh District Sikar (Raj)
Through its Director Ashutosh Bajoria S/o Sh.Shrigopal Bajoria
aged about 45 years, R/o Vaishali Nagar, Jaipur.
                                                                   ----Petitioner
                                   Versus
1.      Rajasthan State Ganganagar Sugar Mills Limited, Fourth
        Floor, Nehru Sahakar Bhawan, Bhawani Singh Road,
        Jaipur Rajasthan Through its General Manager.
2.      Director-In-Charge, Rajasthan State Ganganagar Sugar
        Mills Limited, Fourth Floor, Nehru Sahakar Bhawan,
        Bhawani Singh Road, Jaipur Rajasthan.
                                                                ----Respondents

For Petitioner(s)        :     Mr. Ashutosh Bhatia
For Respondent(s)        :     Mr. Vivek Dangi



          HON'BLE MR. JUSTICE PANKAJ BHANDARI

                                    Order

02/12/2021

1. This Arbitration Application has been filed under Section

11(6) of Arbitration and Conciliation Act, 1996 for appointment of

Sole Arbitrator.

2. It is contended by counsel for the applicant that there is an

Arbitration Clause in the Notice Inviting Tender. As per the

Arbitration Clause, in case of any dispute arising out of any matter

related to the tender/contract/agreement, the matter will be

referred to Sole Arbitrator appointed by Director-in-Charge,

RSGSML whose decision shall be final and binding on both the

parties. The place of arbitration shall be Jaipur. The fees and other

(2 of 3) [ARBAP-69/2020]

expenses of the Arbitrator shall be borne by both the parties

equally. It is further contended that the dispute arose between the

parties and notice was served by the claimant on 20.05.2020

requesting the Director In charge to appoint an independent or

impartial Arbitrator who should have no relation with any of the

parties. It is further contended that no reply to the said notice was

given by the non-applicant and sole Arbitrator was not appointed.

It is contended that since the parties have failed to act as required

under the Arbitration Clause, the Court can appoint an Arbitrator

in terms of Sub-Clause 6 of Clause 11 of Arbitration and

Conciliation Act, 1996(hereinafter called as 'Act').

3. Counsel for the applicant further contends that in Perkins

Eastman Architects DPC & Ors. Vs HSCC(India) Ltd. AIR

2020 SC 59, it was held by the Apex Court that a person who is

debarred from being appointed as an Arbitrator cannot appoint an

Arbitrator. Reliance is also placed reliance on TRF Ltd. Vs Energo

Engineering Projects Ltd. (2017) 8 SCC 377.

4. Counsel for the non-applicant has contended that the

Arbitration clause would become redundant if power of

appointment of arbitrator is taken. It is also contended that the

person to be nominated as an Arbitrator may not have the

disqualifications attached under Sub-Section 5 of Section 12 of the

Act.

5. I have considered the contentions.

6. In the judgment of the Apex Court TRF Ltd. Vs Energo

Engineering Projects Ltd.(Supra) further elaborated by the

Apex Court in Perkins Eastman Architects DPC & Ors. Vs

HSCC(India) Ltd.(Supra) Perkins Eastman Architects DPC

& Ors. Vs HSCC(India) Ltd, wherein it was specifically held that

(3 of 3) [ARBAP-69/2020]

the person who has an interest in the outcome or decision of the

dispute, must not have the power to appoint a sole Arbitrator and

that has to be taken as the essence of the amendments brought in

by the Arbitration and Conciliation(Amendment) Act, 2015. This

Court, therefore, deems it proper to appoint the Arbitrator and

invoke the power under Section 11(6) of the Act of 1996. This

Court appoints Hon'ble Justice Mr. J.R. Goyal(Retired) T-1, Paliwal

Park Near Sanghi Farm, Tonk Road, Jaipur, as an Arbitrator to

decide the dispute.

7. The arbitration application stands allowed. The Arbitrator

shall be entitled to lay down fees as provided under Manual of

Procedure for Alternative Disputes Resolution, 2009 as amended

from time to time. Formal consent shall be obtained from Hon'ble

Justice Mr. J.R. Goyal(Retired) T-1, Paliwal Park Near Sanghi Farm,

Tonk Road, Jaipur.

(PANKAJ BHANDARI),J

HEENA/03

Powered by TCPDF (www.tcpdf.org)