UNION OF INDIA Vs. HARYANA TELECOM LTD

JUDGEMENT

(1.) An application (O.M.P. No. 247 of 2001) under Section 42 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act') read with Order 7, Rule 11 and Section 151 of the Code of Civil Procedure praying for dismissal of the O.M.P. (M) No. 15 of 2001 i.e. an objection petition under Section 34 of the Act preferred by the Union of India against the award dated 7.8.2000, has been filed by M/s. Haryana Telecom Ltd.

(2.) In brief the facts leading to the presentation of this application are that a dispute arose between the parties in respect of a contract regarding supply of telephone cables by M/s. Haryana Telecom Ltd. to the Union of India wherein the Union of India invoked the clause of the agreement which enabled it to impose liquidated damages on account of delayed supply of goods by M/s. Haryana Telecom Ltd. in respect of various purchase orders. Therefore, M/s. Haryana Telecom Ltd. filed an arbitration application under Section 11(6) of the Act in the High Court of Delhi seeking appointment of an Arbitrator as per the agreement to decide the aforesaid dispute between the parties. The Delhi High Court vide order dated 22.9.1998 referred the dispute for adjudication of the Sole Arbitrator Mr. Justice P.K. Bahri (Retd.) of the High Court of Delhi. The Arbitrator entered on the reference and made the award in question against which the Union of India preferred objection petition i.e. O.M.P. (M) No. 15 of 2001 in this Court. In the present application, M/s. Haryana Telecom Ltd. has averred that since the application for appointment of Arbitrator was made in the High Court of Delhi and the reference has been made by the said Court, therefore, only the said Court has jurisdiction over the proceedings arising out of the award.

(3.) The Union of India filed a reply to the application controverting the objection regarding jurisdiction though not disputing that the reference to the Arbitrator was made by the High Court of Delhi.