KONERU VENKATARATNAM Vs. UNION OF INDIA

JUDGEMENT

(1.) Vires of Section 13(2) of the Arbitration and Conciliation Act, 1996 (for short 'the Act') is in question. The said question arises under the following circumstances.

(2.) The petitioner herein had entered into a hire purchase agreement for purchasing a vehicle with the 2nd respondent. Allegedly disputes and differences arose between the parties and the petitioner with a view to give quietus thereto handed over the possession of the vehicle in question on 24-8-1998. The 2nd respondent, however, for resolution of the disputes and differences between them appointed the 3rd respondent herein as arbitrator. The 3rd respondent issued a notice dated 28-6-1998 which reads thus: Please take notice that the petitioner has made the above reference to me, the copy of which is enclosed herewith, for deciding the claim arising out of the hire purchase agreement dated 22-12-1997 and I having accepted the said reference posted the above matter for your appearance before me in my office at the above address on 10-8-1999 at 4.p.m., for answering the claim of the petitioner and also for enquiry. Please note that you are also at liberty to file objections or written statement to the claim of the petitioner. If you fail to appear on that day, the above matter will be heard and decided ex parte in your absence.

(3.) A telegram was issued by the petitioner questioning his appointment stating: Client Koneru Venkatratnam instructions arbitration proceedings 165/99 regarding ICDS Limited Manipal Enquiry 10-8-1999. But hire purchase agreement copy not received with your notice you are not arbitrator as per agreement clause since agreement form was taken signed blank when form filled up with sole arbitrator name not known even till today petitioner dealing entirely at Vijayawada no cause of action at Udipi or Manipal petitioner is having branch at Vijayawada petitioner suppressed fact of liquidation of account giving quietus to the account by accepting delivery of vehicles at Vijayawada and returned promotes blank signed N.J. Stamps Cheques Blank Signed so no dispute at all calling for arbitration attempt filing statement of claim false and fraudulent Sections 12,13 apply client do not accept any proceedings you are standing counsel for the petitioner usually unfit to be arbitrator do not proceed drop any action else seeking legal action Akkapeddi Srinivasa Rao Advocate.