- (1.) An interesting question is involved in this petition under Section 11(6) of the Arbitration and Conciliation Act , 1996 shown of unecessary facts, the case setup by the petitioner is that he is the distributor for L.P.G. Gas cylinders and engaged in the aforesaid business in pursuance of the distributorship agreement with Hindustan Petroleum Corporation dated 16.05.2008. The petitioner is stated to be the distributor of L.P.G. since last 31 years and the distributorship agreement have been renewed from time to time and lastly it was renewed on 15.05.2013, a copy of which has been annexed as Annexure No. 1 with the petition. The aforesaid distribution agreement contains an arbitration clause which reads as under:-
(2.) Any dispute of difference of any nature whatsoever or regarding any rights, liability, act, omission, or account of any of the parties, here to arising out of or in relation to this agreement (other than those in respect of which the decision ofany person, is by the Agreement expressed to be final and binding) shall be referred to the sole Arbitration of the Chairman and Managing Director of the Corporation or of retired officer of oher PSUs or retired Senior Central Govt. Officer who may be nominated by the Chairman and Managing Director. The dealer will not be entitled to raise any objection to any such Arbitrator on the ground that the Arbitrator is or was an officer and/or share holder of the Corporation or that in the course of his duties as an officer of the Corporation he had expressed views on all or any of the matter in dispute of difference. In the event of the Arbitrator to whom the matter is originally referred vacating his office or being unable to act for any reasons the Chairman and Managing Director as aforesaid at the time of such vacation of office or inability to act, shall designate person who shall be entitled to proceed with the reference from the point at which it was left by his predecessor. It is also a term to this contract that on person other than the Chairman and Managing Director or person nominaed by such Chairman and Managing Director of the Corporation as aforesaid shall act as Arbitrator hereunder, the cost of the arbitration shall be shared equally by the parties. The award of the Arbitrator so appointed shall be final, conclusive and binding on all parties to the Agreement, subject to the provisions of the Arbitration and Conciliation Act , 1996 or any statutory modification or of re-enactment there of and the rules made thereunder and for the time being in force shall apply to the Arbitration proceeding under this Clause. The award shall be made in writing and published by the Arbitrator "within six month after entering upon the reference or within such extended time not exceeding further four months as the sole arbitrator shall by a writing under his own hands appoint.
(3.) The arbitrator shall have power to order and direct either of the parties to abide by, observe and perform all such difference i.e. dispute before him. The arbitrator shall have all summary powers and may take such evidence, oral and/or documentary as the arbitrator in his obsolute discretion thinks it and shall be entitled toercise all power under the Indian Arbitration Act , 1940 including admission of any affidavit as evidence of the matter in difference i.e. dispute before him. The arbitrator shall be at liberty to appoint, if necessary any accountant or engineering or other technical person to assist him, and to act by the opinion so taken.;