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Madhya Pradesh High Court

Bcl Industries Limited vs Managing Director M.P. State ... on 21 August, 2024

Author: Vishal Dhagat

Bench: Vishal Dhagat

         NEUTRAL CITATION NO. 2024:MPHC-JBP:42884




                                                               1                                 AC-31-2023
                                 IN     THE     HIGH COURT OF MADHYA PRADESH
                                                      AT JABALPUR
                                                           BEFORE
                                             HON'BLE SHRI JUSTICE VISHAL DHAGAT
                                                     ON THE 21 st OF AUGUST, 2024
                                                 ARBITRATION CASE No. 31 of 2023
                                             BCL INDUSTRIES LIMITED
                                                      Versus
                               MANAGING DIRECTOR M.P. STATE COOPERATIVE MARKETING
                                         FEDERATION LIMITED AND OTHERS
                           Appearance:
                              Shri Girdhar Prasad Upwanshi - Advocate for applicant.
                              Ms. Ankita Khare - Advocate for respondent No.1.
                              Shri Shubham Manchani - Advocate for respondent No.2.
                                                                ORDER

Applicant has filed application under section 11(6) of the Arbitration and Conciliation Act, 1996.

2. Applicant has written letter on 19.01.2023 for appointment of Arbitrator as per clause 28.02 of Tender documents but non-applicant had refused the request on 06.03.2023. It is submitted that there is arbitration clause between the parties and dispute has arisen between applicant and non-applicant, therefore, as per arbitration agreement between the parties, respondent be directed to appoint an Arbitrator in the case.

3. Learned counsel for respondent submitted that appointment of Arbitrator was rejected by letter dated 06.03.2023. Said rejection has not been challenged, therefore, petition is not maintainable. It is further submitted that Authority was within its jurisdiction to pass an order of refusal as arbitrator proposed does not fall within prohibited category under section 12 of Arbitration and Conciliation Act, 1996.

NEUTRAL CITATION NO. 2024:MPHC-JBP:42884 2 AC-31-2023

4. Heard counsel for the parties.

5. In arbitration clause, it has been mentioned that arbitrator agreement contained in clause 28.2 is quoted as under:-

इस िन वदा द तावेज एवं इसके संचालन से संबंिधत सम त ववाद जैसे क कसी ावधान क या या, कसी ावधान क वैधता, प कार के अिधकार एवं कत य, का िनराकरण थमत: आपसी चचा के अनुसार िनराकृ त कये जाने के यास कये जायगे, जसके असफल होने पर उ ववाद का िनराकरण म य थता के आधार पर कया जाएगा । आब े टर, आयु सह संचालक खादय, खादय नाग रक आपूित एवं उपभो ा संर ण संचानालय, म य दे श भोपाल ह गे। म य थता क या म य थता एवं सुलह अिधिनयम 1996 अभी तक के संशोधन स हत के अधीन होगी । म य थता का थान भोपाल, म य दे श होगा एवं म य थता क भाषा हं द अथवा अं ेजी होगी।

As per aforesaid clause, Arbitrator in case of dispute will be Commissioner - Cum - Directorate of Food and Civil Supplies M.P. Applicant has filed an application for appointment of District Judge as an Arbitrator. Applicant can avoid the District Judge to be appointed as an Arbitrator, if he falls within any of the category mentioned in Section 12 of Arbitration and Conciliation Act, 1996. Commissioner is an employee of Food and Civil Supplies and is part of management and may also have direct or indirect interest in the dispute, therefore, Commissioner could not have been appointed as an Arbitrator. Respondent had committed an error in refusing the application that grounds mentioned in Section 12 is not available to applicant.

6. In view of same, application for appointment of Arbitrator is allowed with the following directions.

(i) Arbitration case is referred to Madhya Pradesh Arbitration Centre (Domestic and International), Jabalpur (M.P.D.I.A.C.).

(ii) Shri Ajit Singh, Former Judge, High Court of Madhya Pradesh R/o:

NEUTRAL CITATION NO. 2024:MPHC-JBP:42884 3 AC-31-2023 Guru Bharti Niwas, 4A Nayagaon Cooperative Housing Society, Rampur, M.P.E.B. Jabalpur 482008, E-mail address - office.justiceajitsingh@gmail. com is appointed as Arbitrator to resolve the dispute between the parties. Said arbitration will take place at Madhya Pradesh Arbitration Centre (Domestic and International) Jabalpur.

(iii) Director of Madhya Pradesh Arbitration Centre (Domestic and International), Jabalpur (M.P.D.I.A.C.) is directed to inform the said Arbitrator regarding his appointment and receive his consent. If said Arbitrator does not give his consent then matter may be referred to this Court for appointment of another Arbitrator.

(iv) Director in consultation with Arbitrator and parties, shall fix date of arbitration.

(v) Arbitration case will be carried out at Jabalpur (MP) and venue may be changed with consent of parties.

(vi) Parties are directed to deposit necessary charges and fees as per M.P. Arbitration Center (Domestic and International) Rule, 2019.

(vii) Other provisions of Section 15 (3)(4) of the Arbitration and Conciliation Act, 1996 will apply to Substitute Arbitrator.

7. Arbitration case is disposed off.

(VISHAL DHAGAT) JUDGE pn Signature Not Verified Signed by: PANKAJ NAGLE Signing time: 29-08-2024 17:49:09