CHOKHI DHANI Vs. J.S. CONSTRUCTION

JUDGEMENT

(1.) Heard finally. This appeal has been preferred under Sec. 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act, 1996') against the order dtd. 05/07/2016, passed by the XV Additional District Judge, Indore in arbitration case No.86/2013, wherein an application filed by the appellant/defendant under Sec. 34 of the Act of 1996 has been rejected affirming the award passed by the sole arbitrator on 10/05/2013.

(2.) In brief, the facts of the case are that the appellant is a proprietorship concern and is running its business in the name and style of 'Chokhi Dhani'. In the year 2003, the appellant entered into an agreement with the respondent M/s J.S. Construction as the contractor for construction of a water park, Clause 46 of which refers to arbitration. In connection with the said agreement, a dispute arose between the parties in respect of payment towards the work carried out by the contractor as it was alleged by the contractor that the appellant has withheld an amount of Rs.14,95,960.00 due to it and thus, for the appointment of an arbitrator, an application under Sec. 11 of the Act of 1996 was also filed by the respondent before this Court which was registered as AC No.8/2007, and came to be decided by this Court vide its order dtd. 28/04/2010, permitting the respondent to withdraw the petition with liberty to approach the named arbitrator under Clause 46.

(3.) After withdrawal of the aforesaid application AC No.8/2007, the respondent designated the Architect as the sole arbitrator as according to the agreement between the parties, the Architect is defined as 'Kalp Kartik Architects'. The said Architect served a notice of arbitration to the appellant and immediately, an application under Order 7 Rule 11 of CPC was field before him objecting his appointment as the arbitrator. The aforesaid application was rejected by the arbitrator vide its order dtd. 03/12/2012, holding that all the issues have been settled by the order of High Court dtd. 28/04/2010 passed in AC No.8/2007.