JUDGEMENT
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(1.) Facts of the case leading to the present controversy may first be noticed. On 07-09-2017, an agreement was signed at
Jaipur between the petitioner and the respondent No.1, whereby
the latter had to provide 'Business Process Management
Outsourcing Services' to the former at its campus located at
Jaipur. A dispute arose between the parties regarding the
fulfillment of the obligations contained in the agreement. Initially,
on 19-07-2018, the petitioner lodged a First Information Report at
Police Station Chandwaji, Jaipur against respondent No.1 alleging
the breach of conditions of the agreement and subsequently, the
respondent No. 1 filed a claim by way of e-mail before the
respondent No. 2 for initiation of arbitration proceedings. Pursuant
to the said request, a letter was issued by the respondent No. 2
stating that the arbitration proceedings shall be deemed to have
begun on 04-04-2018 and in this regard, a Sole Arbitrator,
namely, Shri Abhinav Chandrachud was appointed on 04-05-2018.
The aforesaid Sole Arbitrator held the procedural hearing on 25-
07-2018 directing the respondent No. 1 to file his claim before 14- 08-2018. However, even after seeking several opportunities, the respondent No. 1 did not file the claim. Ultimately, vide order
dated 11-10-2008, the aforesaid Sole Arbitrator recused himself
from the arbitral proceedings. Thereafter, the respondent No. 2
appointed respondent No. 3 Mr. Sitesh Mukherjee as the Sole
Arbitrator on 21-01-2019. The newly appointed Sole Arbitrator
passed the Procedural Order No. 1 dated 28-01-2019 and
provided 21 days' time to the respondent No. 1 to file statement
of claim alongwith the documentary evidence and the witnesses
statements. This procedural timetable again was against the
mandate of the statutory period stipulated by Section 29 A of the
Arbitration and the Conciliation Act , 1996 (in short 'the Act of
1996'). The respondent No.1 filed its statement of claim after inordinate delay of more than 10 months from the commencement
of the arbitral proceedings. Thereafter, the petitioner submitted its
objections under section 16 of the Act of 1996 regarding the
maintainability of the proceedings. The Sole Arbitrator without
deciding the said application, issued the Procedural Order No. 3
dated 10-04-2019 and revised the schedule of proceedings
against the provisions of the Act of 1996. Therefore, by filing the
instant writ petition, a prayer is made to quash and set-aside the
arbitration proceedings in question with a further prayer to direct
the respondents Nos.2 and 3 not to proceed in the matter as their
mandate stands terminated.
(2.) By order dated 27-05-2019, a Coordinate Bench of this Court had directed that the further proceedings before the Arbitral
Tribunal shall remain stayed. The said interim order is continuing.
(3.) On behalf the respondent No.1, a preliminary objection regrading lack of jurisdiction of this Court to entertain this writ
petition was raised. To buttress his arguments, the learned
counsel for the respondent No. 1 argued that the arbitration was
agreed to be conducted by the Mumbai Centre for International
Arbitration (in short 'MCIA') in accordance with MCIA Rules of
2016. Accordingly, the arbitration proceedings were initiated by the MCIA in Mumbai. As a matter of fact, this Court situated at
Jaipur has no jurisdiction to hear and decide this writ petition. It
was also contended that the writ petitioner has already appeared
before the Sole Arbitrator during the arbitral proceedings and also
filed an application under Section 16 of the Act of 1996, alleging
that the dispute cannot be resolved through arbitration. Therefore,
there was no occasion for the petitioner to have moved this Court
by filing the present writ petition. In support of his aforesaid
submissions, the learned counsel has placed reliance on the
judgments in (i) BGS SGS SOMA JV vs NHPC Ltd ., 2019(17)
SCALE 369, (ii) Brahmani River Pellets Ltd. vs Kamachi
Industries : 2019(9) SCALE 818, and (iii) Indus Mobile
Distribution Pvt. Ltd. vs Datawind Innovations Pvt. Ltd :
(2017) 7 SCC 678.;
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