RATNA INFRASTRUCTURE PROJECTS Vs. THE UNION OF INDIA

JUDGEMENT

(1.) This is an application filed under Sec. 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator. The dispute has arisen in execution of a contract for civil work and Ash Dyke Package for Nabinagar Thermal Power Project. Seeking invocation of the arbitration clause, the applicant submitted an application before the competent authority and sought for reference of the matter to the Arbitrator under Clause 56 of the agreement. However, when nothing was done, the jurisdiction of this Court under Sec. 11(6) was invoked by the applicant by filing this application on 26th of July, 2016 and after the jurisdiction of this Court was invoked, it seems that the respondents on 28.11.2016 appointed an Arbitrator in accordance with the provisions of Clause 56.

(2.) However, petitioner submits that now in view of the judgment rendered by the Supreme Court in the case of Bharat Sanchar Nigam Limited & another Vs. Motorola India Private Limited- AIR 2009 (2) SC 337 and orders passed by various Benches of this Court, one of which is Request Case No. 12 of 2016 (Kec-Delco-Varaha.Jv Vs. The General Manager, East Central Railways, Hajipur & Ors.), decided on 09.11.2016, once Arbitrator in accordance with the agreement is not appointed and the jurisdiction under Sec. 11 has been invoked, the right to appoint Arbitrator under the agreement stands forfeited and now it is for this Court to take steps as contemplated under Sec. 11. This law is also laid down in the case of BSNL Vs. Dhanurdhar Champatiry (2010) 1 SCC 673.

(3.) Finding aforesaid to be the legal principle applicable in the matter, this application is allowed.