PAREKH INDUSTRIES LIMITED Vs. DIAMOND INDIA LIMITED

JUDGEMENT

(1.) This is an application under Sections 14 and 15 of the Arbitration and Conciliation Act, 1996 (for short, "the ACA") whereby the petitioner/original claimant inter-alia prays for a relief that the mandate of the arbitral tribunal (sole arbitrator) be terminated and a substitute arbitrator be appointed by the Court. The following are the prayers as made in the petition:-

(2.) Disputes between the parties had arisen under an agreement dated 1 July 2016, whereunder the respondent agreed to sell precious metals to the petitioner. The disputes were referred for adjudication of a sole arbitrator as per the arbitration agreement entered between the parties and contained in clause 42 of the said agreement.

(3.) The case of the petitioner is that on the petitioner invoking the arbitration agreement by its Advocate's letter dated 7 August 2018, the respondent appointed a sole arbitrator who by his letter dated 11 September 2018 accepted the appointment. A disclosure as per requirement of Section 12(1) of the ACA was also made by the learned sole arbitrator and thereafter the learned sole arbitrator entered a reference. A preliminary meeting dated 26 September 2018 was held by the learned arbitrator in which the learned arbitrator fixed fees at the rate of Rs.50,000/- for reading and Rs.50,000/- per sitting which was consolidated fee for the 'claim' and the 'counter-claim' which was to be filed by the respondent and no separate fees were fixed for the counterclaim.