Indian Oil Corp.Ltd.& Ors vs M/S Raja Transport(P) Ltd on 24 August, 2009
The judgment referred to by the learned counsel for the
respondent in Indian Oil Corporation Limited case (supra), is not helpful
to the arguments raised on behalf of the respondent. In the aforesaid case,
vide demand dated 04.01.2006, the respondent therein has sought
appointment of an independent Arbitrator by mutual discussion, which was
found to be not in terms of the procedure agreed between the parties.
However, in the present case, the demand raised by the petitioner is clear
and categorical in respect of existence of disputes and demand for
appointment of an Arbitrator. The nomination of an Arbitrator by the
petitioner is distinct and severable part of the communication and thus does
not affect the right of the petitioner to raise dispute and to seek its
adjudication by an arbitrator in terms of the agreement. The respondent
having failed to appoint an Arbitrator before the invocation of jurisdiction
of this court by the petitioner, the respondent cannot be permitted to
continue with the Arbitrator appointed by them after the filing of the present
petition.