COSMO FERRITES LTD. Vs. HIMACHAL BUILDERS

JUDGEMENT

(1.) TWO agreements dated 21.3.1986 were entered into between the parties which contained an arbitration clause. By these agreements, the present objector petitioner had entrusted some construction work to the respondent. The work was done by the respondent and disputes arose between the parties with regard to the payment for the work done by the respondent.

(2.) THE respondent thereafter filed a petition before this Court under Sections 8 and 20 of the Arbitration Act, 1940 for appointment of an Arbitrator. This petition was registered as Civil Suit No. 33 of 1992. By an order dated 5.3.1993 the petition was allowed and this Court directed the parties to appoint their respective Arbitrators in terms of the agreement. Pursuant to the directions of this Court the petitioner appointed Shri CM. Kaushal as its Arbitrator. The respondent appointed Shri S.K. Sawhney as its Arbitrator. Soon after his appointment, Shri C.M. Kaushal, the Arbitrator appointed on behalf of the petitioner, sent a communication dated 8.10.1993 that he as unable to perform his duties as Arbitrator and resigned from the office of the Arbitrator. On 19.10.1993 Shri S.K. Sawhney wrote a letter to both the parties that an Umpire should be appointed by the Court and stated that he could not enter into agreement unless Umpire was appointed. It appears that even Shri Sawhney did not take any further action in the matter and did not enter into reference.

(3.) IN reply to this letter the present petitioner sent a letter dated 22.7.1996. Reference was made to the resignation of Shri CM. Kaushal and finally the present petitioner proposed the name of one Shri Ramesh Malhotra as its Arbitrator. Thereupon the respondent sent another letter dated 5.8.1992 appointing Shri A.K. Ummat as its Arbitrator under Section 11 of the Arbitration and Conciliation Ordinance, 1996.