JUDGEMENT
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(1.) M /s. D. S. Marbles Pvt. Ltd., a Company registered under the Companies Act, 1956, having its registered office at National Highway No. 8 Pawamagri, Sukher, District
Udaipur, submitted this application under S.11 of the Arbitration and Conciliation Act,
1996 (for short 'the Act of 1996') for appointment of an Arbitrator.
(2.) NOTICES were issued to respondents but no reply has been filed by them.
As per the facts mentioned in the application, the applicant entered into an agency contract with the respondents through contract dated 8-9-2000 for supply of superlite
marble as per the rates mentioned in para 4 of the contract agreement which was for a
period of five years. As per the terms of the contract, the applicant submitted a sum of
Rs. 5,00,000/- by way of Demand Draft Dated 15-9-2005 as security amount and
according to the applicant, that amount was refundable to the applicant after expiry of
the period of the contract. Pursuant to the said agreement, the respondents supplied
the marble blocks on two occasions, i.e. No. B - 1 and B - 2, dated 30-8-2000 in the
amount of Rs. 13,996/- and Rs. 13449/- respectively and thereafter, the respondents
did not make any supply of marble. According to the applicant, the respondents failed to
carry out their contractual obligation according to the terms and conditions of the
contract because of which the applicant suffered huge loss as the applicant had made
commitments to the prospective buyers and that could not be fulfilled and the applicant
had to get marble from other sources at a higher rates. The applicant further submitted
that the non - applicant respondents have not refunded the deposit amount which was
deposited by the applicant with the respondents by way of security deposit.
(3.) AS per clause 17 of the contract, the applicant is entitled to get adjudication of dispute through arbitral proceedings and for that the applicant gave due notice to the
respondents, copy of which has been placed en record as Annex. 1 and the applicant
has also placed on record the copy of the postal receipts and acknowledgment receipts
by which notices were sent and were received by the respondents. According to the
applicant, the respondents failed to appoint arbitrator even after expiry of notice period
after receipt of the notice. Therefore, this Court may appoint the Arbitrator by exercising
power under S.11 of the Act of 1996.;
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