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M/S R.N. Metals v. Haryana Power Generation Corporation Ltd.

Punjab & Haryana HC16 Mar 2012ARB/142/2011

Case brief

AI extract

What is this about?

The High Court, relying on Supreme Court judgments regarding the lapse of the right to appoint an arbitrator when an appointment is not made within 30 days of notice, appointed a sole retired District Judge to adjudicate a dispute between the petitioner and respondent arising from a purchase order.

What did the court decide?

Appointment of Mr. U.B. Khanduja, District Judge (Retd.), as a sole arbitrator to adjudicate the dispute.

M/S R.N. Metals Vs Haryana Power Generation Corporation… — Arbitration | Punjab & Haryana HC (2012)

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Arbitration Case No.142 of 2011

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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Arbitration Case No.142 of 2011

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Date of decision:- 16.03.2012

M/s R.N.Metals

...... Petitioner

Haryana Power Generation Corporation Ltd. ......Respondents

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CORAM: HON'BLE MR. JUSTICE HEMANT GUPTA

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Present: Mr. Sachin Sood, Advocate, & Ms. Priya Soni, Advocate, for the petitioner.

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Mr. Narender Hooda, Advocate, for the respondents.

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HEMANT GUPTA, J. (ORAL)

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The petitioner has sought appointment of an Arbitrator to adjudicate upon the disputes arisen between the parties out of purchase order dated 01.10.2008. The said purchase order contains an arbitration clause, which reads as under:

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19. ARBITRATION : In the event of any question/dispute arising under the contract the matter in dispute shall be referred to a single arbitrator, who shall be mutually acceptable to both the parties. In case the parties fail to agree to the nomination of a single arbitrator, the matter in dispute shall be referred to two arbitrators one to be nominated by the contractor and other by HPGCL. In the event of the said arbitrators not agreeing, then an umpire shall be nominated by the arbitrators, in writing. The decision of the said arbitrators/umpires shall be final, conclusive and binding to parties and the provision of the Indian Arbitration Act, 1940 and rules thereof shall be deemed to apply.

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The dispute arose between the parties regarding the supply of

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Hi-chrome Grinding Media Balls in respect of which the petitioner has served a notice dated 26.03.2011 (Annexure P-20) for appointment of an

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Arbitration Case No.142 of 2011

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Arbitrator. The petitioner also served reminders, the last of them being on 06.08.2011. But no Arbitrator was appointed, which led to the filing of the present petition before this Court on 04.10.2011.

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Mr. Hooda, learned counsel for the respondents, has produced a copy of the communication dated 30.11.2011, whereby the Chief Engineer/Fuel, has been appointed as an Arbitrator in respect of the disputes raised by the petitioner.

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Learned counsel for the petitioner states that the petitioner does not accept such Arbitrator and that the respondents have lost their right to appoint an Arbitrator in view of the judgments of the Hon'ble Supreme Court in Datar Switchgears Ltd. Vs. Tata Finance Ltd and another (2000) 8 SCC 151, Bharat Sanchar Nigam Limited and another Vs. Motorola India Private Limited (2009) 2 SCC 337 and Bharat Sanchar Nigam Limited and another Vs. Dhanurdhar Champathiray (2010) 1 SCC 673.

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Keeping in view the fact that the Arbitrator was not appointed within 30 days of the demand being raised and the fact that there is no agreement to the Arbitrator nominated by the respondents, a sole arbitrator is ordered to be appointed to adjudicate upon the disputes between the parties.

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Consequently, Mr. U.B. Khanduja, District Judge (Retd.) resident of H.No.792-A, Sector 8, Panchkula, is appointed as an Arbitrator to adjudicate upon the disputes between the parties. He shall be entitled to fee as per Punjab and Haryana High Court (Arbitrator's Panel and Fee) Rules, 2011.

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16.03.2012 Vimal

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(HEMANT GUPTA) JUDGE

M/S R.N. Metals v. Haryana Power Generation Corporation Ltd.

Case brief

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M/S R.N. Metals v. Haryana Power Generation Corporation Ltd.

Case brief

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