THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.55 of 2011 20th October, 2011 Between :- NAC Infrastructure Equipment Ltd., Rep.by its Company Secretary – Dheeraj Bohra .. Applicant and Ravi Cranes and Movers Ltd., Through its Managing Director And another .. Respondents THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.55 of 2011 ORDER:- This arbitration application has been taken out by NAC Infrastructure Equipment Ltd., under sub-sections 11 (4) and (6) of the Arbitration & Conciliation Act, 1996 read with Scheme to Appointment of Arbitrator, 1996, seeking appointment of an Arbitrator for resolution of the disputes relatable to Equipment Service Contract, dated 11-11- 2005. The case of the applicant as set out from the affidavit filed in support of the application, in brief, is:- The applicant is a Company incorporated under the Companies Act, 1956. It is engaged in the business of leasing and hiring of infrastructure equipments to its clients. The respondents approached the applicant and sought to avail equipments on rent. Accordingly the Equipment Service Contracts/Rental Agreements dated 8-7-2005, 16- 7-2005, 5-9-2005 and 11-11-2005 were entered into between the parties. Pursuant to the said agreements, the applicant rented to the respondent, Daewoo 225 with Rock Breaker, Daewoo 225 Excavator, Ex-210, Motor Grader, (equipments) for various periods. As per the terms of the above said agreements, the respondents would pay the specified rentals punctually to the applicant. As per clause (6) of the agreement, the delayed payment charges would be Rs.1/- per thousand per day. The respondent became due an amount of Rs.24,30,115/- in relation to the agreement dated 5-9-2005, and Rs.11,63,257/- in relation to agreement dated 11-11-2005. Despite repeated demands, the respondents failed to liquidate the liability. The applicant issued a notice dated 12-1-2009 invoking arbitration clause in the agreements and proposing Ms.Bhakti, Advocate, as sole Arbitrator. There being no response from the respondent, the applicant moved Arbitration Application before the Delhi High Court. The said applicant came to be dismissed as withdrawn reserving liberty to the applicant to file the similar application before a competent Court. Hence, this application. Notice to the respondents came to be ordered on 8-7-2011. The respondents entered appearance and sought time for filing counter. Despite granting time on payment of costs of Rs.1,000/-, the respondent did not choose to file counter. Heard learned Counsel appearing for the applicant and perused the material brought on record. Learned Counsel appearing for the applicant submits that the applicant supplied various equipments under the Equipment Service Contracts/Rental Agreements dated 8-7-2005, 16-7-2005, 5-9-2005 and 11-11-2005. The respondent having availed the equipment services, failed to pay the amount due under the contracts. Therefore the applicant invoked the arbitration clauses in the agreements dated 8-7-2005 and 11-11-2005 and proposed Ms.Bhakti, Advocate, as sole Arbitrator. The respondent failed to give consent to the name proposed by the applicant. Hence, the applicant is compelled to approach this Court seeking appointment of Arbitrator. Learned Counsel refers the arbitration clause in the Equipment Service Contract dated 11-11-2005 which reads as hereunder:- “In the event of any claim, controversy, dispute or difference between parties hereto, arising out of or in connection with or in relation to this contract, either party will be entitled to refer the same to arbitration in accordance with The Arbitration and Conciliation Act, 1996 and the rules made there under. The parties agree that all disputes shall be subjected to the jurisdiction of Delhi Court.” Indeed, the applicant approached Delhi High Court seeking appointment of Arbitrator. The application filed by him came to be dismissed by the Delhi High Court reserving liberty to the applicant to approach the competent Court. Disputes between the parties have arisen relatable to the Equipment Service Contracts/Rental Agreements. Equipment Service Contracts/Rental Agreements provide arbitration clause. In that view of the matter, I find that the applicant made out a valid ground for appointment of Arbitrator to resolve the disputes between the parties relatable to the Equipment Service Contracts/Rental Agreements dated 8-7-2005 and 11-11-2005. Accordingly, the Arbitration Application is allowed. No order as to costs. Sri Justice C.Y.Somayajulu, a retired Judge of this Court, is appointed as Arbitrator for resolution of the disputes between the applicant and the respondents relatable to the Equipment Service Contracts/Rental Agreements dated 8-7-2005 and 11-11-2005. He is at liberty to fix his own fee. _________________________ B.Seshasayana Reddy, J 20th October, 2011 smr