- (1.) None appears on behalf of the respondent.
(2.) The appellant is a public sector undertaking incorporated under the Indian Companies Act. It appears that the appellant herein issued several work orders to the respondent herein for construction of 32 units NHS (D/S) quarters at Rajpura Colliery, Kapasara, Bihar (now in the State of Jharkhand). As a result thereof, an agreement was executed between the appellant and the respondent. It appears that certain disputes arose as regards the payment for the work done by the respondent. Under such circumstances, the respondent by letter dated 1-6-1990 sought reference of dispute to the arbitrator. On 5-9-1990, the Chief Engineer rejected the request of the respondent for arbitration. Thereafter, the respondent in September 1990 filed a petition under Section 20 of the Arbitration Act, 1940 (hereinafter referred to as "the Act"). A learned Single Judge of the Calcutta High Court appointed an advocate as an arbitrator to adjudicate upon the dispute between the appellant and the respondent. Aggrieved, the appellant filed a letters patent appeal before a Division Bench of the High Court.
(3.) The appeal court disposed of the appeal stating that: "It is submitted by the learned advocate for the respondent that he does not oppose the prayer of the appellant in appointing named arbitrator in the agreement i.e. the Chairman and/or Managing Director of Eastern Coalfields Ltd. It appears that by order dated 1-10-1993 the learned trial Judge appointed Mr Shyam Sunder Dutt, Advocate as arbitrator. In view of the submissions made by the respondent who was the petitioner before the trial court, the appeal is allowed. The order dated 1-10-1993 is set aside and the chairman / managing Director of Eastern Coalfields Ltd. is directed to nominate an arbitrator to hear the disputes between the parties. The Chairman will nominate an arbitrator within two weeks from the date of service within 4 weeks from his date of appointment and will make and publish his award within 4 months from the date of entering upon reference.";