Manjoo Joshi vs Sanjay Prasad

V.K. Bist, Actg. C.J.

Heard learned counsel for the parties.

This application has been filed by the respondent Mr. Sanjay Prasad @ Sanjay with a prayer that in place of Mr. N.C. Mulgali any other independent Arbitrator may be appointed in this matter.

It is not disputed that in the agreement clause itself, the parties have agreed that in case of any dispute amongst the partners, the same will be decided by the majority of the partners or will be decided by the Arbitrator Mr. N.C. Mungoli, Advocate, who has been appointed by the partners by way of the deed and the decision of the Arbitrator will be final and binding on the partners.

Some dispute arose between the partners and the applicants Mrs. Manjoo Joshi and one Suresh Chandra Joshi filed a suit. In the suit, respondent took objection that the suit is not maintainable as the matter of the suit is covered by an Arbitration Agreement. Mr. N.C. Mungoli proceeded as Arbitrator, but the respondent did not cooperate and the Arbitrator, after having become frustrated with the conduct of the respondent, resigned. The applicants Mrs. Manjoo Joshi and Suresh Chandra Joshi filed an application u/s 11(6) of the Arbitration & Conciliation Act, 1996 before this Court for appointing an Arbitrator in the matter. The said application was disposed of by appointing Mr. N.C. Mungoli as Arbitrator. The order, appointing Mr. N.C. Mungoli as an Arbitrator, was passed on 28.03.2014. Now, after a period of three months, an application has been filed by the respondent for changing Mr. N.C. Mungoli by another independent Arbitrator.

The contention of learned Senior Advocate for the respondent is that the respondent has recently came to know that Mr. N.C. Mungoli is relative of the applicants Mrs. Manjoo Joshi and Suresh Chandra Joshi and he is more interested in favour of the applicants, therefore, he should be removed and an independent Arbitrator may be appointed.

Considered the submission advanced by the learned counsel for the parties. It is a case that Mr. N.C. Mungoli, who has been appointed by this Court vide order dated 28.03.2014 as Arbitrator, is a person who was named by both the parties as Arbitrator in their agreement. In such circumstances, the application of the respondent for appointing another Arbitrator cannot be allowed. Moreover, the order-dated 28.03.2014 was passed after hearing both the parties. Consequently, the application is dismissed.

Learned Senior Advocate for the respondent then sought permission of this Court to approach the Arbitrator u/s 13(2) of the Arbitration & Conciliation Act, 1996. No order is required to be passed as it is always open for the respondent to approach the Arbitrator as per law.