BEML LIMITED Vs. PRAKASH PARCEL SERVICES LIMITED

JUDGEMENT

(1.) This appeal filed under Sec. 37(1)(a) of the Arbitration and Conciliation Act , 1996 (hereinafter referred to as 'the Act' for short) emanates from an order dtd. 22/3/2019 passed by the Trial Court insofar as it pertains to rejection of an application filed by the appellant under Sec. 8 of the Act, inter alia on the ground that the appellant has not assailed the validity of the order dtd. 7/11/2016 passed by the Arbitrator by which the Arbitrator has held that it has no jurisdiction to adjudicate the dispute between the parties.

(2.) In order to appreciate the grievance of the appellant, few facts need mention which are stated infra. The appellant is a Government of India undertaking. The appellant entered into an agreement on 25/6/2008 with the respondent who is a transporter. The aforesaid agreement contains an arbitration clause. The arbitration clause reads as under:

(3.) A dispute between the parties arose. Thereupon, the respondent filed CMP No.132/2012 before this Court under Sec. 11(6) of the Act seeking appointment of an independent Arbitrator. A Bench of this Court, by an order dtd. 14/12/2012, referred the matter to the Executive Director of the appellant, as sole arbitrator, as provided in the arbitration clause. At the stage of recording of the evidence before the Arbitrator, the respondent filed an objection with regard to jurisdiction of the Arbitrator. The aforesaid objections was adjudicated by an Arbitrator by an order dtd. 7/11/2006 and it was held that the Arbitrator has no jurisdiction to adjudicate the dispute. The operative portion of the order passed by the Arbitrator reads as under: