SHARMA ENTERPRISES Vs. NBC CORPN LIMITED

JUDGEMENT

(1.) By this petition under Section 20 of the Arbitration Act, 1940 (for short the Act), the petitioner/contractor seeks a direction to the respondent to file the agreement, dated 18 January 1991 between the parties, containing the arbitration clause and appoint a retired Judge of this Court as the sole arbitrator to adjudicate upon the disputes between the parties, as the respondent has failed to appoint an arbitrator in terms of the said clause.

(2.) The facts relevant to the controversy involved are as under:

(3.) Mr.Bhasin, learned counsel for the petitioner has submitted that since the respondent had failed to appoint an arbitrator, in terms of the arbitration clause, for almost six months after the receipt of request by the petitioner, vide its letter dated 20 June 1992, the respondent has forfeited its right to appoint an arbitrator and the petitioner is entitled to invoke the jurisdiction of this court under Section 20(4) of the Act, for appointment of an independent arbitrator. In support, reliance is placed on two decisions of the Supreme Court in G.Ramachandran Reddy & Company, Vs. Chief Engineer, Madras, MES, AIR 1994 SC 2381 and Nandiyal Co-op Spinning Mills Limited, Vs.K.V. Mohan Rao, (1993) 2 SCC 654 and a decision of the Rajasthan High Court reported as State of Rajasthan and Others M/s.S.S. Atwal & Company, AIR 1996 Rajasthan 170.