LAWS(DLH)-1996-7-122

EAST INDIA HOTELS LIMITED Vs. JYOTI PRIVATE LIMITED

Decided On July 01, 1996
EAST INDIA HOTELS LIMITED Appellant
V/S
JYOTI PRIVATE LIMITED Respondents

JUDGEMENT

(1.) This order shall govern the disposal of FAO(OS) 115/96 and 116/96 Filed by the same appellant against the same respondents.

(2.) Suit 1808-A/95 was Filed by the appellant for appointment of an arbitrator relying upon a loan agreement dated 8.8.1980, wherein the respondent had agreed to pay certain amount to the appellant. Suit No. 622- A/95 was filed by the respondent seeking appointment of an arbitrator relying upon a hotel operation agreement whereun- der the appellant had agreed to carry on hotel business in the premises of the respondent. The learned Single Judge has allowed both the prayers and appointed Mr Justice G.C. Jain, retired Judge of this Court as an arbitrator. All the disputes between the parties under the loan agreement as well as the hotel operation agreement and all the claims and counter-claims of the partics have been referred to him. By the same order, the learned Single Judge has rejected I.A. 7955/95 whereon an ex-parte interim injunction was granted in favour of the appellant and I.A. 9753/95 filed by the respondent for vacating the injunction has been allowed. The two appeals have been filed by the appellant feeling aggrieved by both the parts of the order.

(3.) FAO(OS) 116/96 is directed against that part of the order by which the arbitrator has been appointed. The grievance of the appellant is that the two references arising out of two suits should not have been made to a single arbitrator and certainly not to be treated together. It is submitted that such an order would irreparably prejudice the appellant. The stand taken by the appellant before the learned single Judge was that the two references should have been to two different arbitrators. However, this appeal need not detain us any longer inasmuch as during the course of hearing both the learned counsel for the two parties have agreed on the proposal that though the two references for adjudication may be dealt with by the same arbitrator, however, they will be treated as two separate references; both will be tried separately and decided separately, though the two awards shall be made by the arbitrator on one day. The order under appeal shall stand modified and clarified accordingly.