INDIRA RAI Vs. VATIKA PLANTATIONS P LTD

JUDGEMENT

(1.) There are disputes between the petitioner No.1 and the respondent No.1. In view of arbitration agreement between the parties, the matter was referred to the arbitrator and the arbitration is in progress. Initially, the respondent No.2 was appointed as the arbitrator. However, for certain reasons, which would be stated later at appropriate stage, the respondent No.2 discontinued with the proceedings and vide order dated 2nd April, 2003 left the parties to appoint a new arbitrator. Thereafter, Mr.Anil Bhalla, the respondent No.1 appointed respondent No.3 as the arbitrator and this was communicated to the petitioners vide letter dated 29th April, 2003. The appointment of the respondent No.3 as the new arbitrator is not acceptable to the petitioners. They feel that the respondent No.1 earlier objected to the continuation of the respondent No.2 as the arbitrator on frivolous grounds to ease him out so that the respondent No.1 could appoint another arbitrator of his choice. This petition is filed under Section 14 (2) of the Arbitration and Conciliation Act, 1996 (for short `the Act') for a decision on the termination of the mandate of the respondent No.3 with the additional prayer that the respondent No.2 should resume the arbitration proceedings which were being conducted by him.

(2.) Now, the facts in some detail.

(3.) The petitioners had purchased from the respondent No.1 a plot of land in Sohna, District Gurgaon, Haryana vide agreement dated 6th June, 1989. The petitioners were aggrieved against certain unfair trade practices allegedly indulged in by the respondent No.1. They approached the Monopolies and Restrictive Trade Practices Commission, New Delhi by filing a complaint which was registered as RTPE No.41/2001. This complaint was, however, disposed of vide order dated 5th March, 2002 whereby the petitioners and the respondent No.1 were directed to take recourse to remedy of arbitration in view of clause 14 (xi) of the agreement dated 6th June, 1998. In terms of this clause, Mr.Anil Bhalla was to appoint an arbitrator in the event of disputes and differences between the parties. The clause is in the following terms: