MMTC LTD. Vs. SEHGAL BHAI JEWELLERS PVT. LTD.

JUDGEMENT

(1.) PETITION has been filed under Sections 5 & 11 of the Arbitration Act, inter alia, praying that the authority of the Umpire be revoked and another Umpire be appointed to adjudicate upon the disputes and differences arising under the Agreement dated 20.4.1989.

(2.) ON behalf of the respondent it has been contended that there was no disagreement on merit and disagreement was only with regard to the payment of fees and umpire has not abdicated his jurisdiction by remitting back the award to the arbitrator. Counsel for the respondent has also cited Russell on Arbitration. Relying on a decision of Arbn Hindustan Steel Vs. Apeejay Pvt. Ltd. : AIR1967Cal291 , it was contended before me by learned counsel for the respondent that once there was no disagreement with regard to the merit of the case as same was a question of non -payment of fees by the respondent to its own arbitrator, the arbitrator should have proceeded with the arbitration and passed order under Section 38 of the Arbitration Act.

(3.) ON behalf of the petitioner it was contended that in view of the letter dated 12.5.2000 written by Dr.Bakshish Singh, arbitrator appointed by the respondent and specific stand taken by the arbitrator, in paragraph 2 of the said letter inter alia, mentioning that : -