Allowed

M/S. Stohos Infotech Pvt. Ltd. v. Kerala Small Industries Development Corporation Ltd. (Sidco)

Kerala HC6 Jun 2024AR/54/2024

Case brief

AI extract

What is this about?

Petitioner sought appointment of a sole arbitrator over disputes about non-payment of dues under a 2014 agreement with SIDCO for setting up record rooms, which contained an arbitration clause. The respondent did not act on the arbitration notice. The court allowed the petition and appointed a retired District Judge as sole arbitrator.

What did the court decide?

Sole arbitrator appointed; arbitrator may rule on all issues including jurisdiction; Registry to obtain disclosure statement; fees per Fourth Schedule.

M/S. Stohos Infotech Pvt. Ltd. Vs Kerala Small Industries… — Arbitration | Kerala HC (2024)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE G.GIRISH

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THURSDAY, THE 6TH DAY OF JUNE 2024 / 16TH JYAISHTA, 1946

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AR NO. 54 OF 2024

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PETITIONER:

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M/S. STOHOS INFOTECH PVT. LTD
47/726L, MARYMATHA BUILDING KADUPPATH ROAD, VENNALA P O
KOCHI. REPRESENTED BY ITS MANAGING DIRECTOR, BIJU KORAH
RESIDING AT, KEECHERIL HOUSE, MUDAKKUZHA P O,
PERUMBAVOOR, PIN: 683546., PIN - 682028

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BY ADVS.
PAUL JACOB (P)
SHERU JOSEPH
MATHEW THOMAS
NIKITTA TRESSY GEORGE
DIPAK CHERIAN ABRAHAM

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RESPONDENT:

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KERALA SMALL INDUSTRIES DEVELOPMENT CORPORATION LTD
(SIDCO)

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HOUSING BOARD BUILDING, 6TH FLOOR, SANTHI NAGAR,
THIRUVANANTHAPURAM. P.B. NO:50. REPRESENTED BY ITS
MANAGING DIRECTOR., PIN - 695001

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BY ADV P.U.SHAILAJAN ; G.BIJU, STANDING COUNSEL, SIDCO

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THIS ARBITRATION REQUEST HAVING COME UP FOR ADMISSION ON
06.06.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

A.R.No.54/2024

G.GIRISH, J.

---------------

A.R.No.54 of 2024

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------------------------------

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Dated this the 6^th day of June, 2024

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O R D E R

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This Arbitration Request is filed under Section 11 of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’) for the appointment of sole Arbitrator to adjudicate the disputes arisen between the petitioner and the respondent.

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The petitioner, a private limited company involved in the business of IT Solutions in consulting and integration, support service etc., entered into an agreement on 24.03.2014 with the respondent, a Government Company and a specialised facilitator for Government projects, for setting up modern record rooms in the Survey Bhavan, Thiruvananthapuram and the 14 other District centres in Kerala. Clause 2(i) of the aforesaid agreement produced as Annexure-A1 provided for the resolution of the disputes between the parties in accordance with the provisions of Arbitration and Conciliation Act, 1996. In connection with a dispute

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about the non-payment of the amount said to be due to the petitioner from the respondent, Ext.A4 notice was issued to the

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A.R.No.54/2024

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respondent with a request to have resolution of the dispute by way of arbitration as provided in Clause 2(i) of the Annexure-A1 agreement. As the respondent did not co-operate with the above request, the petitioner has approached this Court with the present petition.

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The respondent appeared through the learned Standing

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Counsel.

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Heard the learned counsel for the petitioner and the learned counsel for the respondent.

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As already stated above, Clause 2(i) of Annexure-A1 agreement provides for resolution of the disputes between the parties to the said agreement by taking recourse to the Arbitration and Conciliation Act, 1996. Annexure-A4 notice would reveal that the petitioner has conveyed the above intention to have the issues sorted out at the instance of an Arbitrator appointed by the parties upon mutual agreement. Since it is seen that the above request of the petitioner has not been acceded by the respondent, the petitioner has got every right to get an order from this Court appointing a sole arbitrator for the resolution of the dispute with the respondent in connection with Annexure-A1 agreement executed in between them.

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A.R.No.54/2024

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In the result, the application stands allowed and an order is passed as follows:

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i) Sri.S.Jagadees, District Judge (Retd.), Thoppil House, A.C.George Lane, Unichira, Thrikkakkara P.O. Ernakulam, Pin-682 021 is nominated as the sole Arbitrator to arbitrate upon the disputes that have arisen between the petitioner and the respondent within the purview of Annexure-A1 agreement.

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ii) The learned Arbitrator is at liberty to rule on all issues between the parties in connection with the said agreement, including his own jurisdiction if the parties raise such a dispute.

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iii) The Registry is directed to communicate a copy of this order to the learned Arbitrator within a period of ten days from today and to obtain a Statement of Disclosure from the learned Arbitrator as provided under Section 11(8) read with Section12(1) of the Act.

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iv) Once the Disclosure Statement is obtained from the learned Arbitrator, the Registry shall issue the certified copy of this order to the learned Arbitrator, with a copy of the said statement appended to it, retaining the original of the same by this Court.

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v) The fees of the learned Arbitrator shall be governed by the Fourth Schedule of the Act.

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A.R.No.54/2024

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vi) The learned Arbitrator shall decide the manner in which the fees and expenses of the arbitration proceeding has to be paid by the parties.

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vii) The parties will appear before the learned Arbitrator on such date and place as decided by the learned Arbitrator.

(sd/-)

G.GIRISH, JUDGE

jsr

A.R.No.54/2024

APPENDIX OF AR 54/2024

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PETITIONER’S ANNEXURES

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ANNEXURE A1 TRUE COPY OF THE AGREEMENT DATED 24.03.2014 BETWEEN THE APPLICANT AND THE RESPONDENT.

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ANNEXURE A2 TRUE COPY OF THE JUDGEMENT OF THIS COURT DATED 17.11.2023 IN WP(C) 26199 OF 2023.

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ANNEXURE A3 TRUE COPY OF THE LETTER DATED 22.11.2023 ISSUED BY THE COUNSEL FOR THE APPLICANT TO THE RESPONDENT.

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ANNEXURE A4 TRUE COPY OF THE LETTER DATED 23.01.2024 ISSUED BY THE COUNSEL FOR THE APPLICANT TO THE RESPONDENT.

M/S. Stohos Infotech Pvt. Ltd. v. Kerala Small Industries Development Corporation Ltd. (Sidco)

Case brief

What is this about?

What did the court decide?

M/S. Stohos Infotech Pvt. Ltd. v. Kerala Small Industries Development Corporation Ltd. (Sidco)

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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