- (1.) This arbitration petition for setting aside award and accompanying application for stay of it was sought to be moved on 22nd April, 2019. Court noticed arbitrator said in the award, he was appointed by advocates of claimants. Court found, neither appointment letter nor arbitration agreement had been disclosed. Hearing of the petition and application stood adjourned.
(2.) Today Mr.Banerjee, learned advocate appears on behalf of petitioner and hands up copy of loan agreement dated 30th September, 2009. Said agreement contains arbitration clause which is reproduced below:- "15.ARBITRATION: All disputes, differences and / or claims arising out of these presents or as to the construction, meaning or effect here of or as to the rights and liabilities of the parties here under shall be settled by arbitration to be held in Kolkata in accordance with the provisions of the Arbitration and Conciliation Act , 1996 or any statutory amendments thereof or any statute enacted for replacement thereof and shall be referred to the sole arbitration of a person to be nominated / appointed by Shriram. In the event of death, refusal, neglect, inability or incapability of the persons so appointed to act as an arbitrator, Shriram may appoint a new arbitrator. The award including the interim award/s of the arbitrator shall be final and binding on all parties concerned. The arbitrator may lay down from time to time the procedure to be followed by him in conducting arbitration proceedings and shall conduct arbitration proceedings in such manner as he considers appropriate. Any proceedings to be initiated in any court of law in pursuance of this arbitration shall be instituted and held in the court at Kolkata only."
(3.) Mr.Banerjee submits, this arbitration clause cannot have been enforced to result in arbitration and award. His client was not called upon to agree on a named arbitrator but made to put signature on agreement permitting respondent to appoint arbitrator. Copy of appointment letter of arbitrator was not given to his client. Furthermore, impugned award was more than a year after entering upon reference. Appointee entered upon reference in year 2016 and the award is dated 28th December, 2018. There was no extension of time for award being made. On query from Court he submits, his client participated in the reference but did not challenge jurisdiction of the arbitrator, before him. Mr. Srivastava, learned advocate appears on behalf of respondent. He does not dispute that there was no extension of time thus giving mandate beyond statutory period to the arbitral Tribunal to pass award.;