High CourtsSingle Bench(1981) 06 MAD CK 0022

N. Krishna Rao vs Indian Oil Corporation Ltd.

Madras High Court · Decided on 26 June 1981 · Citation: AIR 1981 Mad 367

HON’BLE JUDGES
Shanmukham, J
CASE NUMBER
Application No. 3641 of 1980

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Judgment

20 paragraphs · 425 words

Shanmukham, J.

1.

A party to the arbitration has laid this application as against the other party for appointment of an arbitrator in terms of clause No. 37 of the

agency agreement dated 8-3-1973 on the ground that by, the appointment of the arbitrator by the respondent, justice will not be done to the

applicant. It is also alleged that originally, the respondent appointed one Sri V. T. Ramadoss as the arbitrator, but then on his transfer, one S P.

Adarkar, Deputy L. P. G. Manager, I. O. C. Bombay had been appointed instead as arbitrator. According to the applicant, the manner in which

the respondent''s men took possession of cylinders, will reveal that the respondent and naturally its employees are prejudiced against the applicant.

2.

This application is stoutly opposed on the ground that the applicant agreed to the terms contained in the agency agreement dated 8-3-1978, that

Cl. 37 enabled the respondent to appoint its own arbitrator and that the allegation of prejudice is not well founded.

3.

It is nowhere complained in the affidavit that clause 37 which enables, the respondent to appoint its own officer as an arbitrator, is illegal. It

means that such a clause Is binding on the respondent as well. Having agreed to such an appointment of its own officer by the respondent as

arbitrator, should there be any difference between the contracting parties, it is not now open to the applicant to pray for appointment of arbitrator

by resorting to Section 9(b) of the Arbitration Act. Section 9(b) of the Arbitration Act provides that it one party fails to appoint an arbitrator, either

originally or by way of substitution as aforesaid, for fifteen clear days after the service by the other party of a notice in writing to make the

appointment, such other party having appointed his arbitrator before giving the notice, the party who has appointed an arbitrator may appoint that

arbitrator to act as sole arbitrator in the reference, and his award shall be binding on both parties as if he had been appointed by consent. Here, the

only party who is entitled to appoint arbitrator, has exercised its option and appointed the arbitrator. There Is no discretion vested in the applicant

but to accept such appointment by virtue of clause 37. So long as the arbitrator has been appointed, there is no vacancy so that the Court would

appoint one,

4.

The result is application is not only unsustainable, but is also devoid of merits. Therefore, it is dismissed without costs.

5.

Application dismissed.