PUNJ LIOYED LTD Vs. PETRONET MHB LTD

JUDGEMENT

(1.) Leave granted.

(2.) The agreement entered into between the parties contains an arbitration clause which reads as under:

(3.) Disputes and differences arose between the parties. The appellant served a 30 days' notice on the respondent demanding appointment of an arbitrator and reference of disputes to him. The respondent failed to act. On expiry of 30 days, the appellant moved the Chief Justice of the High Court for appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996. Admittedly, even till the date of the moving of the application, the respondent had not made appointment consistently with the arbitration clause. The learned Judge designated by the Chief Justice of the High Court refused to appoint the arbitrator holding that the only remedy available to the appellant was to move in accordance with clause 14.1 abovesaid, whereupon the Functional Director would adjudicate upon the disputes as sole arbitrator.