Allowed

Prakash Industries Ltd. v. Chhattisgarh State Industrial Deve.

Chhattisgarh HC9 Aug 2012ARBA/45/2011

Case brief

AI extract

What is this about?

In an application under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of a sole arbitrator, the Court held that a case was made out as the dispute arose from a lease agreement containing an arbitration clause. With the consent of parties, the Court appointed the Chairman of the Respondent Corporation as the sole arbitrator and disposed of the application.

What did the court decide?

Appointment of Chairman, Chhattisgarh State Industrial Development Corporation Limited as sole arbitrator and disposal of the application.

Prakash Industries Ltd. Vs Chhattisgarh State Industrial… — Arbitration | Chhattisgarh HC (2012)

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HIGH COURT OF CHHATTISGARHAT BILASPUR

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Arbitration ApDlication No. 45 of 2011

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PETITIONER

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Prakash Industries Limited, Janjgir Champa through its Director (Corporate Affair) Prakash Industries Ltd. Champa, District - Janjgir Champa (Chhattisgarh)

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Versus

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RESPONDENT

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Chhattisgarh State Industrial Development Corporation Limited (CSIDC)^{throyghitsExecutiveDirector,} Bharti Jeevan Bima Nigam, Vyashayik Parishar, Pandri, Raipur (Chhattisgarh)

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MEMORANDUM OF REQUEST UNDER SECTION 11 (6) OF THE ARBITRATION AND CbNCILIATION ACT. 1996

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(SB: Hon'ble Mr. N.K. Aaarwal. J.)

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Present : Mr. Abhishek Sinha, counsel for the petitioner. Mr. Ayaz Naved, counsel for the respondent.

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ORAL ORDER

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(09.08.2012)

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The petitioner has preferred instant application under Section 11 (6) ofthe Arbitration and Conciliation Act, 1996 (henceforth^'the Act') for appointment of sole Arbitrator.

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According to the petitioner, respondent has leased out land admeasuring 326.60 acres (in 22 acres, 75 acres, 28.50 acres, 10 acres, 100 acres, 91.10 acres) vide lease deed dated 03.01.1991. However, the petitioner received a letter written by Divisional Forest Officer, Korba directing the petitioner to vacate the land on the ground that the land of 44 hectares in possession of the petitioner is a part of reserved forest.

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Due to above notice issued by the Divisional Forest Officer, the disputes and differences have arisen between the parties.

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Para 32 of the lease deed contains arbitration clause, which reads as under:

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"In the event of any dispute grising between the parties in respect of the deed or on any matter whatsoever connected, therewith, except in respect of the matters on which decision of the Managing Director is declared hereunder as final and binding on the lessee, the same shall be referred to the arbitration of Chairman, M.P. Audyogik Kendra Vikas Nigam (Raipur) Ltd., Raipur whose decision thereon shall be final and binding on the parties.

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The petitioner, vide notice dated 29th April, 2011 (Annexure P/11) requested the respondent for appointment of independent Arbitrator. In reply to above, the respondent has shown it^ readiness to appoint Chairman, Chhattisgarh State Industrial Development Corporation Limited as sole Arbitrator, in accordance with arbitration agreement. After receipt of above reply, the instant application for appointment of arbitrator has been filed by the petitioner.

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Learned counsel for both the parties submit, they have no objection ifthe Chairman, Chhattisgarh State Industrial Development Corporation Limited is appointed as sole Arbitrator in the present case.

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Considering that the parties to the proceedings entered into agreement which contains arbitration clause and further considering that the dispute had arisen out of lease agreement,^{thisCourtisof} the opinion that a case for appointment of arbitrator is made out.

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Therefore, 1 hereby, with the consent of the parties, appoint Chairman, Chhattisgarh State Industrial Development Corporation Limited, as sole arbitrator, to decide the petitioner's claim and respondent's counter claim, if any. 9. Registry of this Court to intimate Chairman, Chhattisgarh State Industrial Development Corporation Limited about his appointment as Arbitrator in the instant matter to resolve the dispute arose between the parties. Necessary papers be also sent to Chairman, CSIDC along with addresses ofthe parties.

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Parties to the application are^{alsodirectedtoapproachthe} Chairman, Chhattisgarh State^{IndustrialDevelopmentCorporation} Limited, Raipur.

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In view of the above, this^{applicationforappointmentof} Arbitrator stands disposed of. ——

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Sd/N.K. Agarwal Judge

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Anjani

Prakash Industries Ltd. v. Chhattisgarh State Industrial Deve.

Case brief

What is this about?

What did the court decide?

Prakash Industries Ltd. v. Chhattisgarh State Industrial Deve.

Case brief

What is this about?

What did the court decide?

What the court decided

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