KAY IRON WORKS PVT LTD Vs. EVEREST CEMENT CO LTD
HIGH COURT OF CHHATTISGARH
Kay Iron Works Pvt Ltd
Everest Cement Co Ltd
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(1.) HEARD on admission as well as on the application (M.C.P. No. 587/ 2005) for stay.
(2.) BRIEF facts of the case are that the agreement dated 25th July, 1998 between the parties contained arbitration clause whereunder in case of a
dispute, the parties could refer it for arbitration of a single arbitrator. However,
in the event both the parties not agreeing for the appointment of single
arbitrator, each party was to nominate one arbitrator of his choice. The dispute
was then to be referred to such arbitrators under the Arbitration Act, 1940.
In pursuance of the above arbitration clause, the defendant/appellant appointed Mr. Vijay Bhatia to act as its arbitrator and the plaintiff/respondent
appointed Mr. Ravishankar Jha to act as its arbitrator. However, despite several
notices issued by Mr. Vijay Bhatia the arbitrator for the defendant/appellant,
Mr. Ravishankar Jha the arbitrator for the plaintiff/respondent completely
neglected to participate in the proceedings. Thereafter, the defendant/appellant
issued a notice dated 09-02-2004 to the plaintiff/respondent to appoint any
other arbitrator within 15 days, failing which his arbitrator Mr. Vijay Bhatia
would proceed to act as sole arbitrator in the above proceeding. Despite
issuance of such notice, the plaintiff/respondent did not appoint a fresh
arbitrator whereupon Mr. Vijay Bhatia acting as the sole arbitrator entered
upon the reference and passed an award of Rs. 71.372 lakhs in favour of the
defendant/appellant and against the plaintiff/respondent.
(3.) THE plaintiff/respondent preferred an objection under Section 30 of the Arbitration Act alleging inter alia that the sole arbitrator had not
considered the claim of the plaintiff/respondent.;
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