Arbitration Case No. 7 of 2010 [1] IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH Arbitration Case No. 7 of 2010 Date of Decision: 21.09.2010 Maruti Trading Company ..Petitioner Versus Punjab Akalies & Chemicals Ltd. ..Respondent CORAM: HON'BLE MR. JUSTICE MUKUL MUDGAL, CHIEF JUSTICE 1.Whether Reporters of local papers may be allowed to see the judgment ? 2. Whether to be referred to the Reporters or not ? 3. Whether the judgment should be reported in the Digest? Present :- Mr. Munish Jolly, Advocate, for the petitioner. Mr.Arun Nehra, Advocate for the respondents. *** MUKUL MUDGAL, C.J. (Oral) 1. This petition has been filed by the petitioner under Section 11(6) of the Arbitration & Conciliation Act, 1996 (for short ' the Act), for appointment of a sole Arbitrator to adjudicate upon the disputes between the parties. 2. Clause 24 of the agreement contains the Arbitration Clause which reads as under:- “In all cases of dispute or disagreement between the parties hereto as to any matter arising out of or relating to this Purchase Order/Work Order whether such dispute or disagreement shall arise during the continuance of this Purchase Order/Work Order regarding Arbitration Case No. 7 of 2010 [2] interpretation of this Purchase Order/Work Order or any clause or clauses thereof or upon or after the termination hereof and provided no understanding between the parties can be reached for the settlement of the difference such dispute or difference shall be referred to the sole arbitration of the Managing Director of Punjab Akalies & Chemicals Limited or any other officer appointed by him on his behalf, in accordance with the provisions of Arbitration & Conciliation Act, 1996 or any statutory modifications or substitute thereof and all the provisions of that Act, so far as are applicable or of any of them for the time being in force shall apply to every reference hereunder. The award given by such Arbitrator shall be final, conclusive and binding upon the parties to this Purchase Order/Work Order. The Arbitrator may from time to time, with the consent of the parties, enlarge the time for making or publishing the award. The arbitration proceedings shall be held at Chandigarh. Notwithstanding any pending reference to arbitration both parties shall proceed with the execution of their commitments, under the Work Order until the arbitration award is known unless the question of such continuance is a subject matter of such proceedings.” 3. The legal notice given to the respondents on 12.11.2009 did not strictly proceed in accordance with the arbitration clause. Para No.12 of the legal notice dated 12.11.2009 given by the petitioner to the respondents reads as follows:- 12. That since a dispute has arisen between the parties, an independent and impartial arbitrator is to be appointed. For the fairness of arbitration proceedings so that no party nurses any doubt about the integrity or bias it is proposed that a joint application be moved before the Hon'ble the Chief Justice, Punjab & Haryana High Court for appointment of Arbitrator. You are hereby called upon (within one month from the receipt of this notice) for initiation of proceedings for appointment of an independent and impartial arbitrator, failing which my client will be constrained to approach the appropriate forum of law for appointment of an arbitrator to arbitrate in the matter.” 4. Since the aforesaid clause of the agreement contemplates the appointment of the Managing Director of the Punjab Akalies & Arbitration Case No. 7 of 2010 [3] Chemicals Ltd., as an Arbitrator, I am of the view that the legal notice was not strictly in accordance with the arbitration clause. 5. Faced with the situation that the legal notice was not strictly in accordance with the arbitration clause, learned counsel for the petitioner contended that the respondent may be directed to appoint an Arbitrator as per the arbitration clause of the agreement. Mr. Nehra, learned counsel appearing for the respondent does not have any objection to the request of appointment of Arbitrator as per arbitration clause being accepted. 6. In this view of the matter and taking into account the arbitration clause, I direct the respondent to appoint an Arbitrator as per the arbitration clause of the agreement not later than 10 days from today and communicate the name of the Arbitrator to the petitioner. In the meanwhile, the parties will exchange the statements of claim and response thereof. The statement of claim be supplied to counsel for the respondent within four weeks and response to the statement of claim shall be supplied to the counsel for the petitioner within four weeks thereafter. The parties shall appear before the newly appointed Arbitrator on 11.12.2010 at 11.00 A.M. or on an agreed date convenient to the parties but not later than a fortnight from the date of exchange of pleadings as directed aforesaid. The Arbitrator shall dispose of the reference not later than six months from the date of first appearance of the parties. (MUKUL MUDGAL) 21.09..2010 CHIEF JUSTICE 'ravinder'