Madhya Pradesh High Court
M/S Bhanderi Road Lines A ... vs The State Of Madhya Pradesh on 3 January, 2019
1 WP-28811-2018
The High Court Of Madhya Pradesh
WP-28811-2018
(M/S BHANDERI ROAD LINES A PROPRIETORSHIP CONCERN THROUGH Vs THE STATE OF MADHYA
PRADESH)
2
Gwalior, Dated : 03-01-2019
Shri Devendra Sharma, counsel for the petitioner.
Shri Yogesh Singhal, Govt. Advocate for the respondent No.1.
By this petition, the petitioner has challenged the order dated 05/11/2018 (Annexure P/1), by which the petitioner has been directed to ensure the payment of amount shown in this order to the concerning Society.
It is submitted by the counsel for the petitioner that in the present case, ten arbitration proceedings were initiated between different Cooperative Societies and District Marketing Officer and the petitioner was not made party to those arbitration proceedings. By referring to the awards passed in those arbitration proceedings, it is submitted by the counsel for the petitioner that although the petitioner was not made party to the arbitration proceedings, but the liability has been fastened on the petitioner.
Per contra, it is submitted by counsel for State/respondent No.1 that Annexure P/1 is the consequence of various awards passed in each arbitration proceeding. Thus, a separate cause of action has arisen in each and every case and one consolidated petition is not maintainable.
In view of the preliminary objection raised by the counsel for the State, the counsel for the petitioner seeks permission of this Court to withdraw this writ petition with regard to the awards mentioned at Serial No.2 to 10 in the order dated 05/11/2018 (Annexure P/1) and submitted that he may be permitted to file a separate writ petition.
Accordingly, the prayer made by the petitioner is accepted and petition with regard to awards mentioned at Serial No.2 to 10 in order dated 05/11/2018 is permitted to be withdrawn with liberty to file a fresh separate petition.
The petitioner has confined this petition, to the Award dated 30/10/2018 (Annexure P/2) passed by Collector- Cum- Arbitrator, District Vidisha in Case No.0225/B-221/2017-2018. By referring to this Award, it is submitted by the counsel for the petitioner that an arbitration proceeding had taken place between the Primary Sewa Sahkari Samiti, Anandpur and the District Marketing Officer and the 2 WP-28811-2018 petitioner was not party to the said arbitration proceedings. The Arbitrator by award dated 30/10/2018 has fastened the liability of making payment of Rs.2,33,122.30/- on the petitioner. The petitioner has no alternative remedy except to file the present petition because under Section 34 of Arbitration and Conciliation Act, only a ''party'' may file an objection for setting aside the arbitral award and the party has been defined under Section 2(h) of Arbitration and Conciliation Act, which reads as under:-
''2(h) "party" means a party to an arbitration agreement.'' It is submitted that since the petitioner was not a party to the arbitration agreement, therefore, he has no remedy of filing an application under Section 34 of Arbitration and Conciliation Act and present petition is the only remedy available to him.
Heard on the question of admission.
Issue notice to respondents No.2 and 5 on payment of process fee by RAD mode. Process fee be paid within seven working days.
Also heard on the question of interim relief. Considering the submissions made by the counsel for the petitioner that the petitioner was not made party to the arbitration proceedings between Primary Krishi Sahkari Samiti Maryadit, Anandpur and the District Marketing Officer and the Arbitrator has fastened the liability on the petitioner without giving him an opportunity of hearing, it is directed that the order dated 05/11/2018 so far as it relates to direction for depositing of Rs.2,33,122.30/- to Sewa Sahkari Samiti, Anandpur, in compliance of the Award dated 30/10/2018, passed in Case No.0225/B- 221/2017-2018 is hereby stayed till the next date of hearing.
List this case alongwith W.P. No. 27946/2018. CC as per rules.
(S. A. DHARMADHIKARI) PRINCEE BARAIYA JUDGE 2019.01.04 10:32:36 -08'00' Pj'S/-