BRAHMA PRAKASH Vs. STATE OF RAJASTHAN AND OTHERS

JUDGEMENT

(1.) This application under Sec. 11(6) of the Arbitration and Conciliation Act, 1996 has been moved seeking the appointment of sole Arbitrator. The respondents has raised a preliminary objection that there is no arbitration clause in the agreement and in view of Clause 51, there is no scope for any arbitration and the matter is required to go to Civil Court. Clause 23 and Clause 51 of the agreement are reproduced as under :

(2.) It is very clear from Clause 23 itself that the arbitration is contemplated in the agreement and the language of Clause 23 makes it very clear as mentioned in the clause has to take the arbitration proceedings in normal course, in case the request is made by one party and the concerned authority has to act within a period of 30 days from the date the notice given for appointment of Arbitrator for arbitration proceedings. So far as Clause 51 is concerned that relates to the territorial jurisdiction of the Civil Court, if at all, any dispute is taken to the Civil Court by any other parties, Clause 51 does not impinge upon the arbitration. Therefore, the preliminary objection raised by the respondents fails and the same is hereby rejected.

(3.) In the facts and circumstances of the case, the notice demanding arbitration was given by the applicant on 5.3.1999 and the required fees had also been deposited. Despite the expiry of 30 days period therefrom the respondents did not act and the matter was not referred to the Committee for arbitration as mentioned in Clause 23 itself. Thereafter, the petition was filed before the District Court yet no Arbitrator was appointed by the respondents. When the matter came up before this Court through this application on 5.1.2002 yet no Arbitrator was appointed by the respondents and it is admitted position that even uptil this date, no Arbitrator has been appointed.