NIMET RESOURCES INC. Vs. ESSAR STEELS LTD.

JUDGEMENT

(1.) An application has been filed by the appellants invoking jurisdiction of this Court purported to be under Section 14 of the Arbitration and Conciliation Act, 1996 (for short "the 1996 Act") for terminating the mandate of the Sole Arbitrator for appointment of Substitute Arbitrator as also for withdrawal of his Authority in terms of Article 8 of the Appointment of Arbitrators by the Chief Justice of India Scheme, 1996.

(2.) Indisputably, disputes and differences had arisen between the parties. There existed an arbitration agreement. An application under Section 11(5) of the 1996 Act was filed being Arbitration Petition No. 19/2000. By an Order dated 27.9.2000, Shri B.J. Divan, former Chief Justice of the Gujarat High Court was appointed as sole arbitrator.

(3.) In its Order dated 27.9.2000, this Court directed that the sole arbitrator would determine the question as to whether there existed a valid agreement between the parties and consequently had jurisdiction to conduct the proceedings for arbitration or not. An application was filed by the respondent before the learned Arbitrator on or about 20.8.2001. He passed an interim award opining that he had jurisdiction to proceed further in the arbitration proceedings and determine the disputes between the parties.