Vineet Saran, J. - (1.) On 09.04.2015, the petitioner had placed purchase order with the opposite party for supply of refractory materials. After the supply was made, the opposite party raised certain claim with the petitioner-company, which was refuted by the petitioner by its reply dated 12.01.2016. The opposite party then, for its claim/recovery of amount due for the goods supplied by it to the petitioner, made a reference to the Micro, Small Enterprises Facilitation Council, Cuttack (for short, 'MSEFC') under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 (for short, "MSME Act 2006"). The MSEFC thereafter allowed the claim of the opposite party on 07.02.2017 and directed the petitioner to pay a sum of Rs.35,36,683 along with interest. The said order of the MSEFC has been challenged by the petitioner by filing a writ petition bearing W.P.(C)No.10685 of 2017, wherein an order of stay has been passed. The petitioner thereafter on 19.04.2017 wrote to the opposite party, pointing out that the plant operations of the petitioner-company have been affected due to sub-standard materials supplied by the opposite party and thus raised a demand, clearly stating that if the demand was not met, the petitioner would be constrained to invoke Arbitration clause under the agreement/purchase order dated 09.04.2015.
(2.) Since there was no response to the said communication, invoking the Arbitration clause under the agreement/purchase order, on 13.05.2017 the petitioner suggested the name of an arbitrator to decide the dispute between the parties relating to the claim of the petitioner. The opposite party sent a reply dated 12.06.2017, stating therein that the opposite party does not agree for appointment of any arbitrator and that the dispute has already been settled by the MSEFC, in which the petitioner has raised its counter claim and thus the question of reference of any further dispute to the arbitrator under the provisions of the agreement/purchase order would not arise.
(3.) It is in this background that the petitioner has approached this Court under Section 11(5) of the Arbitration and Conciliation Act, 1996 praying for appointment of an arbitrator under the relevant clause of the agreement/purchase order.;