TATA INDUSTRIES LTD Vs. GRASIM INDUSTRIES LTD

JUDGEMENT

(1.) Two companies, first being M/s.Tata Industries Ltd., and the second being M/s. Apex Investments (Mauritius) Holding Private Limited (hereinafter referred to Applicant Nos.1 and 2 respectively) have approached this Court under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Act") for appointment of the Arbitrator in a commercial dispute which has arisen between them and Grasim Industries Limited (hereinafter referred to as "the non-applicant"). Initially the applicants had approached Bombay High Court by way of an application" under Section 11(6) of the Act, however, a stand was taken by the non-applicant that this would amount to an international commercial arbitration and, therefore, it would be the Chief Justice of India alone who would have the powers to constitute the Arbitral Tribunal under Section 11(12) of the Act. It is, therefore, that the matter has come before this Court. The parties are ad demon this jurisdictional issue that the jurisdiction to appoint the Arbitrator lies with the Chief Justice of India or as the case may be, his nominee.

(2.) There is no dispute between the parties that there is an arbitration agreement between the parties vide Clause 12.04 of the Shareholders Agreement dated 15.12.2000 and Clause 9 of the Share Transfer Agreement dated 1.6.2006. That issue need not, therefore, be dilated upon.

(3.) The parties are also ad idem that the claims are within limitation.