Telangana High Court
M/S.Zuari Cement Limited vs Indermani Mineral India Private ... on 20 June, 2022
Author: T. Vinod Kumar
Bench: T. Vinod Kumar
THE HON'BLE SRI JUSTICE T. VINOD KUMAR
ARBITRATION APPLICATION NO.9 OF 2021
ORDER:
Despite service of notice on respondent is present nor any counsel has entered appearance on behalf of the respondent nor filed their counter-affidavit.
2. Heard Sri Challa Gunaranjan, Learned Counsel for the applicant.
3. This Arbitration Application is filed under Section 11(5) and (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of a sole Arbitrator to adjudicate the claims and disputes between the applicant and the respondent in relation to Purchase Order dt.09.10.2017.
4. The above said purchase order relates to supply of Indonesian Coal.
5. Clause 'K' of General Terms & Conditions of the said Purchase Order states as under:
"a). In the event of any dispute arising out of the performance or the interpretation of this Purchase Order, the parties hereby agree to make every effort to reach an amicable settlement.2
b). Any dispute, controversy or claim arising out of or relating to this Purchase Order or the breach, termination or invalidity thereof shall be settled by reference of dispute to sole arbitrator to be appointed on mutual discussion. The arbitration shall be conducted in accordance with the Arbitration and Conciliation Act, 1996. The place of arbitration shall be Hyderabad, Telangana. The language used in arbitral proceedings shall be English.
c). This Purchase Order shall be construed in accordance with and governed by the laws of India; the parties hereby expressly submit themselves to exclusive jurisdiction of the courts in Hyderabad, Telangana, India.
d). The award rendered by the sole arbitrator shall be final and binding on the parties.
e). [.....]"
6. Learned Counsel for the applicant contends that on failure of the respondent to supply the contracted coal or refund the advance amount received from the applicant, the applicant was constrained to issue notice dated 17.10.2020 under Section 21 of the Arbitration and Conciliation Act, 1996 invoking above arbitration clause and appointing Shri Justice M. Chalapati Rao (Retd.) as its Sole Arbitrator. The said notice was delivered by e- mail dated 19.10.2020 and also by courier on 28.10.2020, but there was no reply from the respondent till date of filing of the present application. Hence, the present application. 3
7. I have noted the contentions of the learned counsel for the applicant.
8. As there exists an arbitration agreement and, despite service of notice, the respondent has neither entered appearance either in person or through Counsel nor filed counter-affidavit, I consider it appropriate to appoint Hon'ble Sri Justice A. Rajashekar Reddy, Retired Judge of High Court for the State of Telangana, as the Sole Arbitrator to adjudicate the disputes in accordance with law. The Learned arbitrator shall fix his remuneration and incidental charges for the arbitration proceedings, in consultation with the parties.
9. Accordingly, this Arbitration Application is allowed. No costs.
10. As a sequel, miscellaneous petitions, pending if any, shall stand closed.
____________________ T. VINOD KUMAR, J Date: 20.06.202.
MRKR Note: Communicate copy of this order to The Hon'ble Sri Justice A. Rajashekar Reddy(Retd.Judge), Quarter No.2, Spl.A. Minister's Block, Kundanbagh, Begumpet, Hyderabad.
4THE HON'BLE SRI JUSTICE T. VINOD KUMAR ARBITRATION APPLICATION NO.9 OF 2021 20.06.2022.