NIRMAN SINDIA Vs. INDAL ELECTROMELTS LIMITED COIMBATORE

JUDGEMENT

(1.) This arbitration request is filed by the applicant under S.11(6) of the Arbitration and Conciliation Act to appoint an Arbitrator to resolve the entire disputes between the applicant and the 1st respondent as per the agreement entered into between the applicant and the 1st respondent dated 1st May 1997. It is contended by the applicant that while the execution of the work was in progress the 1st respondent illegally and unilaterally terminated the agreement on 5th January 1999. It is also contended that the 1st respondent did not resort to the decision of the adjudicator specified under Clause.36(1) of the agreement or referring the matter to the Arbitrator as specified in Clause.25(1) of the agreement and unilaterally terminated the contract. Therefore it is necessary to appoint an Arbitrator to adjudicate the entire disputes between the applicant and the 1st respondent relating to the contract.

(2.) The respondents have resisted this arbitration request on several grounds. The main objection raised by the 1st respondent is that the applicant has filed this arbitration request without complying with the procedure laid down in Clause.24 and 25 of the agreement and therefore, this arbitration request is not maintainable being premature.

(3.) Clause.24 of the agreement deals with disputes which reads as follows: