UNION OF INDIA Vs. PREMIER FILES LTD

JUDGEMENT

(1.) Leave granted.

(2.) An agreement was entered into between M/s. Premier Files Ltd., the respondent herein, with the appellant- Union of India for piling work in respect of which clause 25 provides for settlement of disputes in relation to the said work. The work agreement was completed and final bill for the said work was paid along with incentive for one week early completion of work under Clause 34 of the Agreement. Some differences and disputes in relation to the said work arose between the parties. The respondent requested the appointing authority of the appellant to appoint an Arbitrator as per arbitration clause to adjudicate the dispute between the parties. The appellant appointed one Shri O.P. Gaddhyan as an Arbitrator to adjudicate the said dispute. The said Arbitrator entered into the reference and thereafter Shri O.P. Gaddhyan resigned. After his resignation, the respondent filed an arbitration application for appointment of an Arbitrator before the High Court at Calcutta. It is not in dispute that when the application for appointment of Arbitrator was pending before the High Court, another Arbitrator was appointed by the appointing authority on 14th of July, 2006. However, by the impugned order, the High Court had disposed of the said application filed by the respondent appointing a senior advocate of the Calcutta High Court as an Arbitrator in terms of Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act').

(3.) Feeling aggrieved, the Union of India has come up to this Court by way of a special leave petition which, on grant of leave, was heard in presence of the learned Counsel for the parties.