SANYUKT NIRMATA Vs. UNION OF INDIA

JUDGEMENT

(1.) This is an application under Section 20 of the Arbitration Act, on behalf of the petitioner, praying for appointment of an independent Arbitrator. The respondents were proceeded ex-parte from 16.10.1998 onwards. Thereafter evidence by way of affidavit was filed by the petitioner. The proceedings of this suit demonstrate that from and after the invocation of Arbitration Clause by the petitioner on 16.12.1993, Shri V. Nainani, P.K. Kohli & B.K. Biswas were successively appointed as Arbitrators after considerable dragging of their feet by the respondents or Arbitrators. But all the three Albitrators resigned upon their being transferred from their then posting. On 21.1.1996, the petitioner again served a notice on the respondent No. 1, i.e. the Chief Engineer, i.e. to appoint an Arbitrator after Mr. B.K. Biswas's transfer and subsequent resignation. But till date there is no response from the side of the respondents and the indifference erf the respondents is further demonstrated by the fact that the matter has proceeded ex parte in this Court from 16.10.1998.

(2.) The learned Counsel for the petitioner relied upon a judgment of the Hon'ble Supreme Court which is reported as G. Rama Chandra Reddy & Co. v. Chief Engineer, M.E.S., Madras Zone, 1994 (2) ALR 61 to contend that it is open to the Court to appoint an Arbitrator in case upon giving of notice in terms of the contract no Arbitrator is appointed. The Hon'ble Supreme Court held that once no Arbitrator is appointed in terms of the contract which required the respondent to appoint the Arbitrator, the respondent loses the power to appoint the Arbitrator under the contract

(3.) Accordingly, in view of the law laid down by the aforesaid judgment and the facts of this case, Shri V.D. Tiwari, Retired Chief Engineer, CPWD, G-17, Saket, New Delhi-110017 is appointed as the Sole Arbitrator. The Arbitrator will give his Award within four months from Sedate of the receipt of this order.