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Judgment
L. Narayana Swamy, CJ
1.The present petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1966 for appointment of an Arbitrator.
The facts of the case are that there was an agreement between the parties and the respondent-Department has awarded the work of construction
of Indoor Sports Complex at Dhalapur, Kullu, H.P dated 23.09.2017 for a sum of Rs.1,84,65,863/- to the petitioner. During the subsistence of the
agreement, the respondents have cancelled the work. Thereafter, according to the petitioner, the respondents are due for a sum of Rs.64,39,534/- and
since the same has not been paid by the respondents, hence this petition has been filed seeking a direction to allow this petition for appointment of an
Arbitrator.
The respondents have filed the reply and has stated that in the absence of notice under Section 11(4) of the Arbitration and Conciliation Act, 1996,
it is impermissible even to make such prayer. Before fling this petition for seeking appointment of an Arbitrator, there shall have a demand notice
under the said provisions. Hence, the learned Additional Advocate General submits that the present petition is not maintainable and prays for dismissal
of the same in the absence of demand notice.
I have heard learned counsel for both the parties.
5 It is true that where the parties are entitled for appointment of an Arbitrator as per the clause in the agreement for appointment of an independent
Arbitrator. The parties to the agreement should have made a demand by issuing a demand notice under Section 11(4) of the Act, but the same has not
been complied with by the petitioner. Under these circumstances, when there is a lapse on the part the petitioner himself of making a demand under
Section 11(4) of the Act, it is impermissible for this Court to appoint an Arbitrator. Appointment of an Arbitrator is for a specific purpose of settlement
of the disputes, if any. When demand itself is not made by the party, then it is not open for the petitioner to make such a prayer.
In view of the above discussion, the present petition is dismissed with liberty to the petitioner to approach the respondent authorities, if so advised by
making a necessary application. After issuance of demand notice, if the petitioner is entitled, liberty is reserved to him to approach this Court again.
Pending application(s), if any, also stand disposed of.