S A BUILDERS LIMITED Vs. NATIONAL FERTILIZER LIMITED

JUDGEMENT

(1.) THE applicant has invoked the jurisdiction of this Court under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of Arbitrator.

(2.) THE parties entered into an agreement Annexure P -1. Admittedly, Arbitration Clause is Clause 59. Initially, under the agreement, an Arbitrator was appointed, who passed the award dated 29.12.1995. The said award was filed before the competent court to make it the rule of the court. The court by order dated 20.5.2011 opined that the said award cannot be made as a rule of the court for the reasons mentioned therein. Resultantly, the respondent was directed to conduct fresh arbitration proceedings and pass fresh award.

(3.) IT is the case of the applicant that no fresh Arbitrator was appointed. The earlier Arbitrator also did not continue with the arbitration proceedings. Thus, by communication dated 16.11.2012 (Annexure P -4) it was prayed that an Arbitrator be appointed to adjudicate upon the dispute. Thereafter, the present applicant filed an application under Section 8 of the Arbitration Act, 1940. The said application was decided by order dated 13.1.2014 (Annexure P -7). The respondents filed reply to the application preferred under Section 8 of the old Act. In this reply, the respondents took a stand that Arbitration Act, 1940 stood repealed on introduction of the new Act on 1996. As per section 11(6) of the Arbitration Act of 1996, it is only High Court which can appoint Arbitrator. The third Additional District Judge by order dated 13.1.2014 decided the said application and opined that the application under Section 11(6) can be decided only by the High Court. The applicant's application was not entertained because of applicability of new Act. The present application is filed seeking appointment of the new Arbitrator.