Star Bus Services Pvt. Ltd vs SREI Equipment Finance Limited

Ashis Kumar Chakraborty, J

The Court: In this application under Section 34 of the Arbitration and Conciliation Act, 1996 (in short, "the Act of 1996) the petitioner, being the respondent in the arbitral proceeding has challenged the award made and published by the sole Arbitrator on August 19, 2019. By the said award the Arbitrator held the respondent, the petitioner herein to be liable to pay Rs.6,67,05,597/- to the claimant, the respondent herein. The Arbitrator has also awarded pre-reference interest, interest pendente lite and interest upon award at the rate of 10% per annum. The parties submit that they have agreed for setting aside of the said award made and published by the Arbitrator. It is further submitted by the parties that a new Arbitrator may be appointed to adjudicate their respective claims and counter-claims, if any, as also the legality of the orders passed by the previous Arbitrator under Section 17 of the Act of 1996.

In view of the agreement between the parties, as recorded above the award dated August 19, 2019 made and published by the sole Arbitrator is set aside.

As submitted by the parties Mr. Samrat Sen, Senior Advocate is appointed as the Sole Arbitrator to adjudicate the claims and counter-claims of the respective parties relating to the Master lease agreement dated June 12, 2013. The learned Arbitrator shall also adjudicate the contention raised by the present applicant with regard to the validity of the decision of the erstwhile Arbitrator for sale of the subject assets.

Learned Arbitrator shall free to fix his fees and to engage necessary secretarial staff for conducting the arbitral proceeding. The fees of the Arbitrator and the remuneration of the secretarial staff shall be borne by the parties in equal share.

The claimant respondent and the present petitioner shall be entitled to file their statement of claim and statement of defence respectively before the learned Arbitrator.

The records of the arbitral proceeding as produced by the erstwhile Arbitrator before this Court shall remain in a sealed cover and upon a request by the new Arbitrator, the Registrar, Original Side shall make over the same to the new Arbitrator upon notice to the respective parties.

With the above directions, A.P. No. 884 of 2019 stands disposed of.

In view of the above direction passed in A.P. No. 884 of 2019, the application filed by the petitioner being G.A. No. 42 of 2020 seeking for stay of operation of the arbitral award has become redundant and the same stands disposed of without any further order.