- (1.) This request under Section 11 of the Arbitration and Conciliation Act, 1996 has been carried to the Chief Justice or his designate upon the petitioner's invitation for the constitution of an arbitral tribunal being rejected by the first respondent.
(2.) The second respondent was duly served the letter of invocation of January 16, 2014, but it did not respond thereto. The second respondent has been served the papers pertaining to the present proceedings and has chosen not to file any affidavit. Since learned government pleader represents the first respondent, it may be presumed that the objections raised on behalf of the first respondent have been adopted by the second respondent government company.
(3.) On February 5, 2008 an agreement was executed between the petitioner on the one hand and the second and first respondents on the other, for the petitioner setting up an integrated steel and power plant in this State. Such agreement envisaged that the petitioner would develop, construct, commission and operate a steel plant with ferro alloy and a power plant. Clause 3 of the development agreement of March 5, 2008 provides as follows: "The Coal supply requirement for RML is envisaged to be of the order of 4.40 Million t.p.a. of Non-coking coal of superior grade & 0.80 Million t.p.a. of Coking Coal for steel production through Sponge Iron as well as the Blast Furnace route for a 30 year period. Endeavour will be made for an appropriate long term arrangement for this supply either through JV with WBMDTC or RML will apply to Government of India for allotment of a Captive Block. WBMDTC will endeavour to extend all possible help for allocation of the Coal Block or the coal will be made available by WBMDTC from any other source. The second respondent's obligation under the agreement was, inter alia, to liaise with the State government to constitute a senior-level committee to review and monitor the implementation of the project and to act as a single-window authority for all state-level clearances and commissions as required for the project. Clause 16 of the agreement provides for arbitration on the following terms: "16. GOVERNING LAW AND DISPUTE SETTLEMENT This Agreement shall be governed by and construed in accordance with laws of India. In the event of any dispute arising between the Parties in relation to or under this agreement, the same shall be settled by arbitration conducted in accordance with the Arbitration and Conciliation Act, 1996 (or any other enactment which replaces the said Act) by an arbitral tribunal consisting of three arbitrators, one to the appointed jointly by WBIDC/WBMDTC and one by RML and the third arbitrator being appointed by the two arbitrators so appointed. The decision of the arbitration tribunal shall be final and binding. The venue for the arbitration shall be Kolkata. The costs of the arbitral tribunal shall be equally borne by both the Parties. Each party shall bear its own cost of the arbitration provided however, the parties can claim costs as part of the relief sought from the arbitration tribunal. In case any dispute is referred to arbitration the parties shall continue to perform their duties and obligations under this Agreement.";