NATIONAL COOPERATIVE CONSUMERS FEDERATION OF INDIA LIMITED Vs. ORISSA MINERALS DEVELOPMENT COMPANY LIMITED

JUDGEMENT

(1.) In this petition under Sections 11 and 15 of the Arbitration and Conciliation Act, 1996 the petitioner seeks appointment of an arbitrator consequent upon the erstwhile arbitrator having apparently abandoned the reference.

(2.) Following a notice inviting tender of June 19, 2007 the petitioner made a bid for the work of handling, loading, transporting and removing iron ore from certain mines operated by the respondent. A letter of intent was issued on Aug. 3,2007 in favour of the petitioner. Disputes and differences arose between the parties within a few months. By a letter of May 6, 2008 the petitioner sought a reference of the disputes to arbitration and requested the chairman-cum-managing director of the respondent to appoint an arbitrator. Such official did not respond to the request with reasonable despatch. There is no dispute that there is an arbitration agreement contained in the notice inviting tender which binds the parties. There is no dispute either that the chairman-cum- managing director of the respondent is the appointing authority under the arbitration agreement.

(3.) Upon the appointing authority failing to pay heed to the petitioner's request of May 6, 2008, the petitioner carried a previous petition under Sec. 11 of the 1996 Act to this Court. A petition under Sec. 9 of the 1996 Act was also filed. During the pendency of the earlier petition under Sec. 11 of the 1996 Act, AP No. 430 of 2008, the chairman-cum-managing director nominated an arbitrator. This was intimated by advocate representing the respondent to the petitioner by a letter of Sept. 6, 2008. The petitioner accepted the nomination and the earlier Sec. 11 petition was disposed of accordingly.