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Judgment
Heard Mr. Shreyansh Mehta, learned counsel for the Applicant as well as Mr. Anand Shukla, learned counsel, appearing for the Respondents.
This is an application under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for brevity ‘Arbitration Act’) for appointment of sole Arbitrator.
Learned counsel for the Applicant submits that there exists a dispute arising out of the Agreement at Annexure- A/2.
Clause 62 of the Agreement reads as under :
“A Any dispute of difference of any nature whatsoever, any, claim, cross claim, counter-claim or set-off or egarding any right, liability, act, omission or account of any of the parties hereto arising out of or in relation to this agreement shall be referred to the sole arbitration of the Director (Marketing) of the other officer of the Corporation who may either himself act as the Arbitrator or nominate some other officer of the Corporation to act as the Arbitrator. The Dealer will not be entitled to raise any objection to any such Arbitrator on the ground that the Arbitrator is an officer of the Corporation.
B In the event of the Arbitrator to whom the matter is originally referred being transferred, he shall be entitled to continue the arbitration proceedings notwithstanding his transfer unless the Director (Marketing) at the time of such transfer or at any lime thereafter, designates another person to act as Arbitrator in his place in accordance with the terms of this agreement.
C In the event of the Arbitrator to whom the matter is originally refereed vacating his office or being unable or refusing to act for any reason, the Director(Marketing) at the time of vacation of office or inability or refusal to act, shalt designate another person to act as Arbitrator in accordance with the terms of this agreement.
D The arbitrator newly nominated by the Director (Marketing) under clause (b) or under clause (c) above, shall be entitled to proceed with the reference from the point at which it was left by his predecessor.
E It is express term of this contract that no person other than the Director (Marketing) or a person nominated by such Director(Marketing) of the Corporation as aforesaid shall act as Arbitrator hereunder. If for any reason, Director(Marketing) is unable or unwilling or refuses or fails to act as Arbitrator or nominate an Arbitrator then matter shall not be referred to arbitrator at all.
F The award of the Arbitrator so appointed shall be final conclusive and binding on all parties to the agreement subject to the provisions of the Arbitrator Act, 1940 or any statutory modification or re-enactment thereof and the rules made thereunder for the time being in force shall apply to the arbitrator proceedings under this clause.
G. The award shall be made in writing and published by the Arbitrator within two years after entering upon the reference or within such extended time not exceeding one further year as the parties shall be writing agree. The parties hereto shall be deemed to have Irrevocably given their consent to the Arbitrator to make and publish the award within the period referred to herein above and shall not be entitled to raise any objection or protest thereto Under any circumstances whatsoever.
H The Arbitrator shall have power to order and direct either of the parties to abide by, observe and perform all such directions as the arbitrator may think fit having regard to the matters in differences i.e. dispute before him. The arbitrator shall have all summary powers and may take such evidence oral and 7 or documentary as the arbitrator in his absolute discretion thinks fit, and shall be entitled to exercise all powers under the Indian corporation Act, 1940, Including admission of any affidavit as evidence concerning the matter in difference i.e. dispute before him.
I It is hereby expressly agreed that powers of the Arbitrator nominated in the matter hereinbefore mentioned shall include the power to make interim order/orders, as the circumstances of the case may Justify to appoint & receiver commissioner or custodian by whatever name called to take possession of the property in dispute during the pendency of the proceeding and subject to such final order as may be passed by the Arbitrator and shall also have the power to issue such further orders from time to time as he may deem fit, on an application being made to him by any of the parties to the dispute where it is apprehended that the property to which at related is in danger of being wasted, damages, deteriorated or parted with or rights of other third parties are likely to be created thereon.
J The parties against whom the arbitration proceedings have been initiated that is to say, the Respondents in the proceedings shall be entitled to prefer a cross-claim, counter-claim or set off before the Arbitrator in respect of any matter In issue arising out or in relation to the agreement without seeking a formal reference of arbitrator to the Director(Marketing) for such counter-claim, cross-claim or set off and the arbitrator shall be entitled to consider and deal with the same as if the matters arising therefrom have been referred to him originally and deemed in from part of the reference made by the Director (Marketing).
K The Arbitrator shall be at liberty to appoint, if necessary, any Accountant or Engineer or other technical person to assist him and to act on the opinion taken from such person.
L The Arbitrator shall have power to make one or more award whether interim or otherwise in respect of the dispute and difference and in particular, will be entitled to make separate awards in respect of claims or cross-claims of the parties.
M The Arbitrator shall be entitled to direct anyone of such parties to pay the costs of the other party in such manner and to such extent as the Arbitrator may in his discretion determine and shall also be entitled to require one or both the parties to deposit funds in such proportion to meet the Arbitrator's fees and expenses as and when called upon to do so.”
Challenging the unilateral condition in the Agreement, the Applicant had earlier filed WPC No. 6591 of 2025 and this Court vide order 17.12.2025 dismissed the writ petition with an observation that the Applicant has a remedy under Section 11(6) of the Arbitration Act for appointment of Arbitrator. Hence, this application for appointment of sole Arbitrator has been filed.
Learned counsel for the respondent submits that in view of Clause 62 of the Agreement at Annexure- A/2, an Arbitrator be appointed to resolve the dispute between the parties.
On agreement of learned counsel for the parties, Shri Justice R.C.S. Samant, retired Judge of this Court is appointed as the sole Arbitrator to arbitrate the dispute.
Relevant records shall be sent to Shri Justice R.C.S. Samant, retired Judge of this Court for necessary action at his end.
The remuneration of the Arbitrator shall be settled with the mutual consent of the parties.
The Arbitration Request Application is disposed of accordingly.