ADARSH FOOD PRODUCTS (PVT.) LTD. Vs. THE MANAGING DIRECTOR, H.P. STATE CIVIL SUPPLIES CORPORATION LTD. AND ORS.

JUDGEMENT

(1.) THIS petition has been filed under sub -section (6) of section 11 of the Arbitration and Conciliation Act, 1996 for appointment of arbitrator in terms of arbitration clause 31 of the agreement executed between the parties on 27.11.2009. Petitioner sent communication to the respondents on 26.11.2012 for appointment of Arbitrator. However, despite notice dated 26.11.2012, no Arbitrator has been appointed as per arbitration clause 31 contained in the agreement dated 27.11.2009. The dispute has arisen between the parties.

(2.) THEIR Lordships of the Hon'ble Supreme Court in Deep Trading Company v. Indian Oil Corporation and others, : (2013) 4 SCC 35 have held that once arbitrator is not appointed as per agreed procedure within stipulated time, right of party concerned to appoint arbitrator is forfeited. Their Lordships have held as under:

(3.) ACCORDINGLY , Mr. Ajay Sharma, Advocate is appointed as Arbitrator and Ms. Ruma Kaushik, Advocate will assist the Arbitrator. The Arbitrator is directed to enter into reference within a period of two weeks from the date of receipt of the copy of the order. Thereafter, the petitioner is directed to file claim petition within a period of three weeks. Reply be filed by the respondent within a further period of three weeks. The pleadings, including, rejoinder and counter -claim, shall also be completed by the parties within a period of eight weeks after entering into reference by the Arbitrator. It shall be open to the Arbitrator to determine his own procedure with the consent of the parties. It shall also be open to the Arbitrator to fix his fee alongwith the fee of Ms. Ruma Kaushik. The award shall be made strictly as per the provisions of the Arbitration and Conciliation Act, 1996 within six months. Needless to ad d that the Arbitrator shall pass a speaking order. The Registry of this Court is directed to immediately inform Mr. Ajay Sharma, Advocate and Ms. Ruma Kaushik, Advocate about the passing of the order by sending a copy of this order to them.