CHATTURBHUJ AGARWALA Vs. FOOD CORPORATION OF INDIA
LAWS(CAL)-2020-2-120
HIGH COURT OF CALCUTTA
Decided on February 05,2020

CHATTURBHUJ AGARWALA Appellant
VERSUS
Food Corporation Of India And Ors Respondents

JUDGEMENT

Ashis Kumar Chakraborty, J. - (1.) The petitioner in this application is the claimant in an arbitral proceeding against the respondent Food Corporation of India. The disputes between the parties arose out of a contract dated containing the following arbitration agreement. "All disputes differences and questions which may at any time between the parties hereto, their representative or assigns touching or arising out of or in respect of these presents or the subject matter thereof, except to any matter the decision of which is expressly provided for hereinbefore shall be referred to sole arbitration of any person appointed by the Zonal Manager, Food Corporation of India. It will be no objection to any such appointment that the person appointed is an Officer of the Food Corporation of India that he has to deal with the matters to which the contract relates and that in course of his duties as such officer of the Food Corporation of India, he has expressed views on all or any of the matters in disputes or differences. The award of such Arbitrator shall be final and binding on the parties to this contract, another person appointed Arbitrator shall be entitled to proceed with the reference from the stage at which it was left by his predecessor........".
(2.) It is also a term of the contract that no person other than a person appointed by the Zonal Manager Food Corporation of India as aforesaid should act as Arbitrator and if for any reason that is not possible the matter is not to be referred to Arbitration at all. It is further provided that the Arbitrator may from time to time with the consent of the parties, extend the time, for making and publishing the award. Subject as aforesaid the provisions of the Arbitration Act 1940 or any statutory modification or reenactment thereof and of the rules made thereunder for the time being in force shall apply to the Arbitration proceeding under this clause. The cost and venue of Arbitration shall be at the discretion of the Arbitrator.
(3.) The disputes between the parties arose at a point of time when the Arbitration Act, 1940 (hereinafter referred to as the "Act of 1940") was in force. In terms of an order dated July 21, 1981 passed by a learned Single Judge of this Court in an application under Section 20 of the Act of 1940, the Zonal Manager of the respondent appointed Shri N.C. Ganguli as the Sole Arbitrator to adjudicate the disputes between the parties. The said Arbitrator entered upon reference and the parties had filed their respective pleadings in the arbitration. The present respondent filed an application before this Court being matter No.699 of 1984 praying for removal of the said Arbitrator. During pendency of the said arbitration, the Arbitrator expressed his unwillingness to act as an Arbitrator any more. The respondent, however, did not agree to the proposal of the petitioner to the appointment of an independent Arbitrator in the matter and did not press for said application, Matter No.699 of 1984 any further. Accordingly, the said application was dismissed. Thereafter, on or about October 11, 1985 the petitioner filed the present application praying for, inter alia, appoint of the fit and proper person to act as an Arbitrator to adjudicate upon the disputes between the parties. The application has been pending for the period of more than 20 years without any fault of the respondent.;


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