Citation : 2025 Latest Caselaw 847 UK
Judgement Date : 10 July, 2025
2025:UHC:6007
IN THE HIGH COURT OF UTTARAKHAND
AT NAINITAL
SRI JUSTICE G. NARENDAR, C.J.
10TH JULY, 2025
ARBITRATION PETITION NO. 28 OF 2024
Between:
Saraswati Dynamics Pvt. Ltd. ................Applicant
and
Opto Electronics Factory .....Respondent
Counsel for the applicant : Mr. Aditya Pratap Singh, learned
counsel.
Counsel for the respondent : None.
Upon hearing the learned Counsel, the Court
made the following
JUDGMENT :
The matter was listed yesterday and is re-
listed today. There is no representation on behalf of
the respondent.
2. Learned counsel for the applicant would
submit that the case has a history; that earlier an
Arbitrator came to be appointed and as the Arbitrator,
on his own volition, changed the seat of arbitration, the
Arbitrator was substituted under provisions of Section
14 of the Arbitration and Conciliation Act, 1996
(hereinafter referred to as "the Act") and; that the
subsequent Arbitrator passed an award and the said
award was challenged under Section 34 of the Act.
2025:UHC:6007
3. The Commercial Court was pleased to set
aside the order. In this background, the present
Application is made.
4. Learned counsel for the applicant would place
reliance on the provisions of Section 43(4) of the Act to
contend that the Arbitrator requires to be appointed.
He would further take this Court through the legal
notice issued by the applicant calling for an
appointment of an Arbitrator. The notice is dated
10.04.2024.
5. In reply to the Notice dated 10.04.2024, the
respondent has effected a reply on 09.05.2024 and has
reiterated their consent for arbitration, except to the
extent that the Arbitrator shall be appointed by the
respondent and in fact, has named Smt. Seema
Kamboj, Deputy General Manager, Ordnance Factory,
Chandigarh.
6. Learned counsel for the applicant would
submit that the law, in this regard, is no more res
integra and; that the Hon'ble Apex Court has settled
the issue in the case of Perkins Eastman Architects
DPC vs. HSCC (India) Limited reported in (2020)
20 SCC 760.
2025:UHC:6007
7. The Hon'ble Apex Court, while deciding the
issue of named arbitrators, has been pleased to hold
that the person, who has interest in the result or
outcome of the arbitration proceedings, does not have
the power to make appointment of a sole arbitrator.
8. In the instant case, the respondent,
definitely, has interest in the result and outcome of the
arbitration proceedings and that apart, the named
arbitrator being an employee under the same
organization, the same is clearly hit by the ratio laid
down by the Hon'ble Apex Court in the case of Perkins
Eastman Architects DPC (supra).
9. The willingness of the respondent to have the
dispute resolved by arbitration is also forthcoming in
the reply given by him to the Notice dated 10.04.2024.
10. In that view of the matter, the same can be
construed as a consent for the dispute resolution by
arbitration and in the light of the law laid down by the
Hon'ble Apex Court in the case of Perkins Eastman
Architects DPC (supra), this Court is of the considered
opinion that the Application requires to be allowed and
is, accordingly, allowed.
10. This Court, hereby, appoints Hon'ble Mr.
Justice V.K. Bist, Retired Chief Justice, High Court of
2025:UHC:6007 Sikkim to officiate as an Arbitrator to adjudicate the
disputes that have arisen between the parties on
merits, in accordance with the Act.
11. Let a copy of this order be communicated to
Hon'ble Mr. Justice V.K. Bist, former Chief Justice of
Sikkim High Court.
12. The Arbitrator shall, in terms of Section 11(8)
of the Act, furnish his disclosure in writing to the Court
within 15 days from the date of receipt of a certified
copy of this order. The Arbitrator shall, in consultation
with the parties, fix the remuneration and other
chargeable fees. The Arbitrator shall endeavour to hear
and pass an Award within the time provided under the
statute.
13. There shall be no order as to costs.
14. In sequel thereto, all pending Applications
stand disposed of.
________________
G. NARENDAR, C.J.
Dt: 10th July, 2025 Rathour
PRAVINDRA Digitally signed by PRAVINDRA SINGH RATHOUR DN: c=IN, o=HIGH COURT OF UTTARAKHAND, ou=HIGH COURT OF UTTARAKHAND,
SINGH 2.5.4.20=23699ccc2fd40ad81b6fd13323779d9e3ae b1097d17dbb53d481cabd25946eed, postalCode=263001, st=UTTARAKHAND, serialNumber=1F65499E931DF71CDAF92A40CC61
RATHOUR 79B8E010331BA695239171F906FD5C45C4E8, cn=PRAVINDRA SINGH RATHOUR Date: 2025.07.16 11:35:16 +05'30'
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