N. RAJAGOPAL Vs. TVS MOTOR COMPANY LTD

JUDGEMENT

(1.) The short question that arises for the consideration of the Court in the above appeal under Sec. 37 of the Arbitration and Conciliation Act, 1996, hereinafter called the Act, is whether in the absence of a dispute / demand being raised by one party arbitral proceedings can be initiated and proceeded with by the other party.

(2.) In order to answer the issue arising in the instant case we have to briefly allude to the facts which preceeded the appointment of the Arbitrator by the Chairman cum Managing Director of the 1st respondent Company.

(3.) The 1st respondent had accepted the request of the appellant to appoint him as the Authorized stockist of the 1st respondent's company's spare parts. They had issued a letter of offer dtd. 16.10.2003 informing the appellant that they were pleased to accept the request of the appellant and appoint him as their stockist. The business was to be conducted in a 800 Sq.ft area for the sales counter and a further extent of 800 Sq.ft as go down / stores at BD Road, Chindamani Commercial Complex, Salem. The appellant was allotted a unique stockist code 30085 which was to be quoted in all the correspondence. Further, the letter of offer provided for resolution of disputes arising out of this arrangement through arbitration. The sole Arbitrator was to be appointed by the Managing Director of the 1st respondent Company. The appellant was required to sign a copy of the letter of offer as a token of his acceptance. The appellant had also signed it and therefore the contract between the parties had been concluded.