M/s Oasis Enterprises vs State Of H.P And Others

M.S. Ramachandra Rao, CJ

This Application is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator to adjudicate the disputes between the parties arising out of award dt.03.02.2020 awarding certain work to the applicant. Clause 25 thereof contains an arbitration clause.

A notice Annexure A-3 dt. 21.04.2023 had been issued by the applicant to the respondents making certain claims blaming the respondents for the failure on the part of the applicant to execute the same, and seeking the appointment of an arbitrator as per clause 25 of the agreement between the parties. When no reply thereto had been given by the respondents, on 28.06.2023, the instant application has been filed by the applicant.

In the reply filed by the respondents they have disputed the contentions of the applicant and even contended that under the contract only a Superintending Engineer is competent to decide the dispute raised by the applicant, and it is not open for this Court to appoint an arbitrator.

I cannot accept the said contention in view of the Section 11(6 A) of the Arbitration and Conciliation Act, 1996, which bars this Court from going into other aspects other than the examination of existence of an arbitration agreement. Learned Deputy Advocate General does not dispute this legal position.

Accordingly, this Application is allowed and Mr. Sohan Lal Sharma, District and Sessions Judge (retired) is appointed as Arbitrator to adjudicate the dispute between the parties, after his disclosure in writing is obtained in terms of Section 11(8) of the Act and only after receipt thereof, shall his appointment, as an Arbitrator, come into force.

On his giving consent to arbitrate the dispute between the parties as an Arbitrator, Mr. Sohan Lal Sharma, District & Sessions Judge (retired), shall enter into reference, and shall pass an award in accordance with law.

Copy of this order be forwarded to the learned counsel for the parties as also to the learned Arbitrator. The learned Arbitrator so appointed shall be entitled to fee as per stipulation contained in 4th Schedule appended to the Act.

The application is disposed of accordingly.