M/S SCHNEIDER ELECTRIC vs UNITED TELECOMS LIMITED

The petitioner-M/s.Schneider Electric IT Business India Pvt. Ltd. has filed this present petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, against the Respondent- United Telecoms Limited for appointment of an Arbitrator under the Agreement between the parties on a lease of certain premises by the Respondent-lessor to the petitioner-lessee.

The petitioner-lessee claims that though the petitioner-lessee had vacated the premises in question and requested the respondent-lessor to refund the security deposit given to the said agreement, since the same was not refunded, a dispute arose between the parties and an Arbitration Clause exists in the Lease Agreement between the parties. A copy of the Lease Agreement dated 24.03.2011 is produced at Annexure-C on record.

Clause-6(o) of the Agreement is quoted below for ready reference:

6(o) Any dispute or difference whatsoever arising between the parties out of or relating to the construction, meaning, scope operation or effect of this agreement or the validity or the breach thereof shall be settled by reference to a sole arbitrator under the provisions of the Arbitration and Conciliation Act, 1996 or of any modification or statutory re-enactment thereof and the award made in pursuance thereof shall be binding on the parties. The venue of Arbitration shall be Bangalore, India subject to the jurisdiction of Counts in Bangalore which shall have exclusive jurisdiction in proceedings to enforce the arbitration.

A notice was served by the petitioner seeking appointment of an Arbitrator on 06.10.2015, but despite such notice, the parties have thereafter failed to appoint an agreed Arbitrator in the matter.

An Amicable settlement of the parties was also tried out in the Bengaluru Mediation Center, but vide Report of the said Bengaluru Mediation Center dated 11.01.2017, the parties have failed to resolve their dispute amicably.

Having heard the learned counsels and perused the record, this Court is satisfied that an Arbitrator therefore deserves to be appointed in this case u/s 11(6) of the Act.

Accordingly, Mr.Justice N.K.Sodhi, the Former Chief Justice, High Court of Karnataka, is appointed to act as an Arbitrator to resolve the dispute between the parties under the provisions of the Arbitration and Conciliation Act, 1996, as per the Rules governing the Arbitration Centre at Bengaluru.

Accordingly, the Civil Miscellaneous Petition under Section 11(6) of the Act is disposed of by appointing Mr.Justice N.K.Sodhi, the Former Chief Justice, High Court of Karnataka, to enter into the said reference of Arbitration and act as an Arbitrator in the present case in the Arbitration Centre, Bengaluru, as per the Rules governing the said Arbitration Centre.

A copy of this order be sent to the Arbitration Centre, Khanija Bhavan, Bengaluru, for proceeding further in the matter, on administrative side and also to Mr.Justice N.K.Sodhi, the Former Chief Justice, High Court of Karnataka, on the address available with the said Arbitration Centre, Bengaluru.