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Himachal Pradesh High Court

Emri Green Health Services vs Of on 15 December, 2023

Author: M.S. Ramachandra Rao

Bench: M.S. Ramachandra Rao

    IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA




                                                                           .
                               Arb. Case No. 372 of 2023





                               Reserved on : 08.12.2023
                               Decided on : 15.12.2023.
    ____________________________________________________





    EMRI Green Health Services                  ...Petitioner

                               Versus




                                                 of
    State of H.P. & another                 ...Respondents
    ____________________________________________________
    Coram:
    The Hon'ble Mr. Justice M.S. Ramachandra Rao, Chief Justice
                       rt
    Whether approved for reporting?1
    _____________________________________________

    For the petitioner :    Mr. Vikrant Thakur and Mr. Shubham
                            Singh Guleria, Advocates.

    For the respondents:                Mr. Arsh Rattan, Deputy Advocate


                                        General.

    M.S. Ramachandra Rao, Chief Justice (Oral)

Heard both sides.

2. This Arbitration Application is filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator for adjudication of a dispute arising out of a Concession Agreement dt. 16.11.2016 entered into between the parties.

1

Whether the reporters of Local Papers may be allowed to see the judgment?

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3. Clause 24.3 of the said Agreement contemplates .

Arbitration Dispute Resolution through arbitration.

4. The applicant alleged in this application that the respondents have unjustly invoked a Bank Guarantee dt.

06.01.2017 for value of Rs. 2.00 crores given by the applicant in of respect of operation and maintenance of 108 National Ambulance Service in the State of Himachal Pradesh.

5. rt According to the learned Counsel for the applicant, a Bank Guarantee for a sum of Rs. 2.00 crores had been given by the applicant validity of which expires on 14.12.2023 and that the respondents are insisting on a further extension of the same, without any lawful authority to do so.

6. Though a reply has been filed by the respondents opposing the appointment of an Arbitrator, the said reply disputes only the contentions on merits raised by the applicant, and no valid reason is offered therein why an Arbitrator cannot be appointed, except stating that the issue can be amicably resolved through mediation.

7. It is also not in dispute that the respondents had not even replied to the notice dt. 23.12.2022 issued by the applicant ::: Downloaded on - 18/12/2023 20:32:14 :::CIS -3- seeking appointment of an Arbitrator in terms of the Concession .

Agreement entered into between the parties and they have filed reply only on 10.11.2023, though the application under Section 11(6) has been filed in the month of March, 2023.

8. Having regard to the said conduct of the respondents, of I deem it appropriate to appoint Mr. Prem Pal Ranta, District & Sessions Judge (Retd.), as an Arbitrator to adjudicate the dispute rt between the parties, after his disclosure in writing is obtained in terms of Section 11(8) of the Act, and only after receipt thereof, shall his appointment, as an Arbitrator, come into force.

9. On his giving consent to arbitrate the dispute between the parties as an Arbitrator, Shri Prem Pal Ranta, District & Sessions Judge (Retd.), R/o Set No. 12, Type-V, Officers Colony, Kasumpti, Shimla-171009 , shall enter into reference, and shall pass an award in accordance with law.

10. Copy of this order be forwarded to the learned Counsel for the parties as also to the learned Arbitrator. The learned Arbitrator so appointed shall be entitled to fee as per stipulation contained in 4th Schedule appended to the Arbitration and Conciliation Act, 1996.

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11. The application is disposed of accordingly alongwith .

pending application(s), if any.

(M.S. Ramachandra Rao) Chief Justice of December 15, 2023 (hemlata) rt ::: Downloaded on - 18/12/2023 20:32:14 :::CIS