DHANLAXMI SOLVEX PVT. LTD. Vs. ASHTA INDUSTRIES LTD.

JUDGEMENT

(1.) This arbitration case under Section 11 (5) of the Arbitration and Conciliation Act, 1996 (for short "the Act") has been filed by applicant for appointment of sole independent arbitrator for resolving the dispute between the parties.

(2.) In brief, the claim of the applicant is that non applicant had established a solvent extraction plant at survey No. 561, village Chakrod, Kalapipal, District Shajapur after obtaining the financial assistance from the M.P. Financial Corporation. Since the non applicant was unable to run the business properly, therefore, an agreement dated 13/4/2006 was executed between the applicant and non applicant containing the terms about supply of Soyabean seeds by the applicant to the non applicant and providing for processing of raw material by the non applicant alongwith other relevant terms. Thereafter MP Financial Corporation had granted permission to the applicant to enter upon the premises and process the raw material in the plant using plant and machinery of the non applicant. The supplementary agreement dated 28.3.2007 was executed between the parties giving priority right to the applicant to purchase the plant in question in case if the non applicant intends to sell the same. A lease agreement was also executed on 28/3/07 under which the non applicant had leased out storage tank and godowns on payment of certain charges and the applicant was put in possession of the leased property. The nonapplicant subsequently had entered into an agreement with the third party M/s Ambika Solvex Ltd. with no intimation to the applicant which was protested by the applicant and since there was a dispute between the parties, therefore, the applicant gave notice dated 20.12.2007 for appointment of arbitrator. The notice was replied by the non applicant on 21/1/2008. Thereafter the present application has been filed.

(3.) Counsel for the non applicant opposing the application has raised an objection relating to nonjoinder of necessary party submitted that subsequent purchaser M/s Ambika Solvex Ltd has not been impleaded. He has further submitted that the dispute is not arbitrable since the property in question has already been sold and that the District Judge while considering Section 9 application has already found against the arbitrability of the dispute.