- (1.) The respondent held an agency of distribution of Indane liquid petroleum gas cylinders from Indian Oil Corporation, the petitioner, under an agreement dated 30.6.2000. The Corporation found that in the sale and supply of LPG cylinders the respondent committed serious breach of the terms of the agreement. It, accordingly, issued a notice to the respondent asking to show cause why the distributorship might not be cancelled The respondent gave its reply which was not found to be satisfactory. But, before the Corporation could take any further steps, the respondent moved the High Court under Section 9 of the Arbitration and Conciliation Act, 1996 seeking interim injunction restraining the Corporation from proceeding further with the show cause notice pending appointment of arbitrator in terms of the arbitration clause in the distributorship agreement. A learned Single Judge accepted the respondent's prayer and restrained the Corporation from proceeding with the show cause notice for a period of eight weeks leaving it open to the respondent to seek his remedies within that time. Against the order of the Single Judge, the Corporation preferred an intra-Court appeal. But the Division Bench affirmed the order of the learned Single Judge observing as follows: "Once all the contents of the show cause notice as to the irregularities which, according to the petitioner, are serious in nature, are disputed, it has to be decided by the arbitral proceedings. Hence, this Court is of the opinion that the learned Single Judge was perfectly correct in granting interlocutory injunction for a limited period. This Court is unable to see any merit in this appeal."
(2.) Aggrieved by the order of the High Court the petitioner came to this Court. We were prima facie of the view that in case of this nature the grant of interim injunction in favour of the respondent was not a proper exercise of jurisdiction under Section 9 of the Arbitration Act. Hence, on the previous date while issuing notice to the respondent we stayed the operation of the impugned order or the High Court.
(3.) Today we are informed that the Corporation has terminated the distributorship granted to the respondent and the respondent has filed an application under Section 11 of the Arbitration Act for appointment of an arbitrator. The controversy in this special leave petition, thus, no longer survives. The special leave petition is disposed of with the observation that the parties shall be free to canvass their respective cases in the proceeding under Section 11 of the Act. Needless to say that any observation made by the High Court while dealing with the respondent's petition under Section 9 of the Act shall have no effect on the future proceedings. Petition disposed of.;