TECHNOFAB ENGINEERING LTD Vs. STATE OF RAJ

JUDGEMENT

(1.) The matter comes up on an application moved by the learned counsel appearing for the applicant, who had earlier moved an application under Section 11 of the Arbitration Act, 1996 for appointment of the Arbitrator Panel for deciding the disputes raised by him. This Court while allowing the application vide order dated 3rd January, 2020 passed the following order:

(2.) After consulting both the parties, however, learned counsel for the applicant submits that they have learnt that Shri Banai Singh, who is a retired Chief Engineer of RUDIP, was involved in the bid process and the declaration in terms of Section 12(1)(a) and (b) cannot be said to be correct. In view thereof, learned counsel submits that the appointment of the said learned Arbitrator, Shri Banai Singh falls within the ambit of Section 12(5) of the Act of 1996 and he is thus not entitled and has been rendered ineligible to perform his duties de jure.

(3.) I have considered the submissions. From the documents placed on record, this Court is satisfied that the mandate of Arbitrator, Shri Banai Singh needs to be terminated in view of Schedule-VII appended to the Act of 1996 as he rendered himself ineligible to perform his duties de jure in terms of Section 12(5) of the Act of 1996. Schedule-VII provides that the Arbitrator ought not be an employee, consultant, advisor or has any other past or present business relationship with a party. Keeping in view above and law laid down by the Apex Court in Bharat Broadband Network Limited Versus United Telecom Limited, reported in 2019 (5) SCC 755, the arbitrator panel as appointed by this Court vide order dated 03.01.2020 is revised to the extent of third member and in place of Shri Banai Singh, Shri R.C. Goyal, Retired Chief Engineer, PHED having Address at C-33, Dev Nagar, Tonk Road, Opp. Kamal & Co., Jaipur with Mobile No.9829117896, is appointed as the Third Member of the Arbitral Tribunal. Apart from the other two members as shown in the order dated 3.1.2013, formal consent shall be obtained in terms of the provisions of the Act from Shri R.C. Goyal for the said purpose. It is made clear that Shri R.C. Goyal is appointed after mutual consent of both the parties who are present before the court. The arbitration proceedings shall now commence afresh from the date it commences its proceedings. Interim orders, if any, passed earlier shall continue till the said commencement of the proceedings.