YUGESH SINGH Vs. MANAGING DIRECTOR, CENTRAL WAREHOUSING CORPORATION,NEW DELHI
LAWS(ALL)-2017-3-426
HIGH COURT OF ALLAHABAD
Decided on March 30,2017

Yugesh Singh Appellant
VERSUS
Managing Director, Central Warehousing Corporation,New Delhi Respondents

JUDGEMENT

Ashwani Kumar Mishra, J. - (1.) This application is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, for appointment of an arbitrator. It is not in dispute that a contract was awarded in favour of applicant by the respondent Corporation, pursuant to which an agreement got executed between the parties. According to clause 19 of the agreement, all disputes and differences arising out of the agreement was to be referred to the sole arbitration of a person appointed by the Managing Director of the respondent Corporation.
(2.) It seems that the contract was cancelled on certain allegations, resulting in accrual of dispute between the parties. Initially a writ petition no.8661 of 2015 was filed by the applicant before this Court, which was disposed of permitting the petitioner to pursue his remedy in terms of arbitration clause. The applicant thereafter filed an application on 15th January, 2016, requesting the Managing Director to appoint an arbitrator. This letter was sent by the registered post, and its receiving is not in issue. A reminder was also sent on 23rd March, 2016. However, no arbitrator was appointed and as such present application was filed on 9th December, 2016. Notices were issued. A counter affidavit has been filed on behalf of Corporation, stating that the Managing Director has appointed an arbitrator vide his order dated 17th January, 2017. Rejoinder affidavit has been filed reiterating the averments made in the application. It is contended that once an application under Section 11(6) has been filed before this Court, the Managing Director seized to have any jurisdiction to appoint an arbitrator in the matter. Reliance is placed upon decisions of the Apex Court in Datar Switchgears Ltd. Vs. Tata Finance Ltd. and another, 2000 8 SCC 151, Punj Lioyed Ltd. Vs. Petronet MHB Ltd., 2006 2 SCC 638, and Bharat Sanchar Nigam Ltd. and another Vs. Motorola India Private Ltd., 2009 2 SCC 337. On behalf of respondent, reliance is placed upon a decision of the Apex Court in Union of India and another Vs. Premco-DKSPL (JV) & others, 2016 AIR(SC) 5420.
(3.) I have heard Ms. Archi Agrawal, learned counsel for the applicant, and Sri S.K. Mishra & Sri Vinod Kumar, learned counsels for the respondent, and have perused the materials brought on record.?;


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