Arbitrator to be appointed if the parties to the agreement do not follow their duties : Patna HC
Title: Delco Infrastructures Projects Limited v The Bihar State Education Infrastructure Development Corporation Limited and Ors
Citation: Request Case No.67 of 2023
Coram: Chief Justice K Vinod Chandran
Decided On: 07-10-2023
Introduction:
The application has been made seeking the appointment of an Arbitrator invoking the powers of the court under Section 11(6) of the Arbitration and Conciliation Act, 1996.
Facts:
Petitioner and the respondent entered into an agreement dated 05.02.2014 The said agreement contains an arbitration Clause-25. The petitioner invoked the said arbitration clause vide communication dated 01.05.2023 and also reply dated 03.06.2023 to the show cause notice dated 26.05.2023 but was to no avail. It is claimed that the respondents have not settled the dispute and the dispute is of civil in nature.
Court’s Analysis and Judgement:
The court found that the there is no dispute in the legality, validity and binding effect of the written agreement entered into between the parties, he existence of arbitration clause contained therein, the existence of dispute(s) arising there from, the dispute arising out of the agreement being civil in nature, no legal impediment in the adjudication of the dispute by the learned Arbitrator, Petitioner having exhausted the channel available for resolution of the dispute, the respondent having failed to appoint an Arbitrator pursuant to the invocation of the arbitration clause by the petitioner. After consideration of the aforementioned factors, the court appointed an Arbitrator to solve the dispute.
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Written by- Sushant Kumar Sharma