SCHENKER INDIA PVT LTD Vs. SEARIR TRANSPORT SYSTEM

JUDGEMENT

(1.) THE petitioner has filed the present petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ,,the Act) for appointment of sole Arbitrator. The facts as per the petition read as under: -

(2.) THE contention of the petitioner is that the respondent has failed to pay the outstanding amount of Rs.1,02,63,726/ - as well as the amount of Rs.13,42,199/ - towards the TDS till 31st March, 2011. As the said amount is not paid by the respondent as per the statement of account for the period 1st January, 2006 to 31 st October, 2011, the details of which were handed over for reconciliation, through letters dated 4 th November, 2011 and 5th November, 2011. But dispute arose between the parties and a legal notice dated 21st June, 2012 was issued by the petitioner to the respondent in order to invoke the arbitration clause. The respondent failed to take any step to nominate the Arbitrator within a month from the receipt of the said notice, rather the respondent denied the liability and disputed the petitioners claim. Therefore, the petitioner left with no option but to file the present petition. The petitioner has referred Clause 15 of the agreement dated 1st February, 1999. The same reads as under: -

(3.) UPON filing of the present petition, notice was issued to the respondent, who appeared in the Court on 26th April, 2013. Preliminary objection was raised by the learned counsel for the respondent that the petition is not maintainable in view of the letter dated 6th March, 1999 issued by the petitioner who had admitted that the agreement stood cancelled and void ab -initio. It is stated that since no fresh agreement between the parties was executed thereafter, the present petition is not maintainable in the absence of Arbitration agreement.