HOTEL MARINA Vs. SUSHIL KUMAR RAUT

JUDGEMENT

(1.) The dispute between the parties is governed by an arbitration clause which reads thus:

(2.) A request for arbitration of dispute which had arisen between the parties was made by the respondents on 24.6.2000. The request was made to Shri S.B. Mehta, Managing Partner of Hotel Marina. This request appears to have been forwarded to the Appointing Authority Shri R.A. Aggarwal as envisaged in the arbitration clause who instead of acting as an Arbitrator himself appointed Shri R.K. Mehra as the Sole Arbitrator by his letter dated 4.7.2000. Immediately thereafter by his letter dated 7.7.2000, Shri R.A. Aggarwal cancelled the said nomination and appointment of Shri R.K. Mehra, and himself entered upon the reference and issued notice to the parties hereto.

(3.) There is a communication dated 27.7.2000 from Shri R.K. Mehra in which he has stated that "after going through the arbitration clause in the work and the contents letters as above I find that after having appointed the undersigned as Arbitrator no authority vests in Shri R.A. Aggarwal to cancel the appointment and to act himself as Arbitrator." It appears that on 29.7.2000 Shri R.A. Aggarwal had a hearing in which the petitioners were not present. Counsel for the respondent states that this hearing was pursuant to Shri R.A. Aggarwal entering upon the reference on 13.7.2000. It is evident that both the Arbitrators are resolutely conducting separate arbitral proceedings. The petitioners have approached this Court with the prayer that this Court should decide on the termination of the mandate of Shri R. A. Aggarwal.