- (1.) This Order would dispose of the petition filed by the petitioner praying for appointment of an arbitrator under Section 11(6) and (9) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act ) in terms of the Arbitration Agreement entered into between the parties.
(2.) The petitioner is a foreign company incorporated under the laws of China having its office at Hong Kong whereas the respondent No. 1 is a citizen of India and Chairman of respondent No. 2 - Shrivastava Group of Companies. Respondent Nos. 3 to 5 are the companies of Shrivastava Group and respondent nos. 6 and 7 are partnership firms carrying on business under the name of Shrivastava Group. The respondent No. 8, also arrayed as party to the petition, is a company formed under the Joint Venture Agreement (for short JVA ) between the petitioner and respondent No. 1. The said company was incorporated and registered under the provisions of the Indian Companies Act, 1956. However, during the pendency of the aforesaid proceedings the name of respondent No. 8 was deleted from the array of parties.
(3.) On 08.09.2003, an agreement of cooperation was entered into between the petitioner on one hand and respondent No. 1 on the other hand for the purpose of providing cooperation and also for exports of iron ore from mines belonging to Shrivastava Group. Pursuant to the above agreement, a JVA was executed on 25.09.2003 between the petitioner and respondent No. 1 for the purpose of mining, processing and export of iron ore. On 26.03.2004 another JVA was executed between the parties, particularly, to iron out certain controversies in respect of the JVA dated 25.09.2003. Article 14.3 of the said JVA, which is an arbitration clause, reads as follows: If the parties fail to resolve the matter through mutual agreement, the dispute shall be referred to an Arbitrator appointed by mutual agreement of the two parties. Such Arbitrator shall be a retired High Court or Supreme Court Judge; such arbitration proceedings shall be completed and Award be given within three months of the Arbitrator s appointment; the cost of such arbitration would be shared equally by the two parties. The arbitration proceedings shall be in accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any subsequent enactment or amendment thereto. The decision of the arbitrator shall be final and binding upon the parties.;