2002 (3) TMI 885 - HC - Companies Law

Issues:
1. Validity of notice of arbitrator appointed by the Court under section 11 of the Arbitration and Conciliation Act, 1996.
2. Dispute over enforceability of a bond for refusal to serve a company for a specified period.
3. Allegation of non-conformity of notice with provisions of section 21 of the Arbitration and Conciliation Act.
4. Jurisdictional challenge by the appellant against the arbitrator's appointment.
5. Dispute over the existence of an arbitration clause in an agreement bond.
6. Applicability of section 21 notice requirement and waiver of rights by the appellant.
7. Estoppel and preclusion of objections due to appointment of arbitrator with consent.
8. Applicability of provisions of section 16 of the Arbitration and Conciliation Act.
9. Maintainability of a writ petition challenging arbitrator's notice post-appointment.
10. Waiver of objections by conduct and comparison with recent Supreme Court decisions.
11. Applicability of past court decisions on arbitration laws to the present case.

Analysis:
1. The case involved a challenge to the notice of an arbitrator appointed by the Court under section 11 of the Arbitration and Conciliation Act, 1996. The appellant questioned the notice through a writ petition, which was dismissed by the Court.
2. The dispute arose from the enforceability of a bond requiring the appellant to serve the company for a specified period or pay damages. The appellant denied the existence of an arbitration clause for resolving the dispute raised by the respondent.
3. The appellant alleged that the notice served did not comply with the provisions of section 21 of the Arbitration and Conciliation Act, raising jurisdictional concerns.
4. The appellant challenged the arbitrator's jurisdiction and appointment, questioning the validity of the agreement bond and the filling of blanks in the arbitration clause.
5. The Court appointed a new arbitrator to adjudicate the disputes between the parties, rejecting the appellant's contentions regarding the notice and appointment process.
6. The Court emphasized the importance of raising all contentions before the arbitrator as per section 16 of the Act, highlighting the need for compliance with arbitration procedures.
7. The appellant's failure to question the appointment order and consent to the arbitrator's appointment led to an estoppel against raising objections post-appointment.
8. The Court dismissed the appeal, citing the inapplicability of past court decisions and the lack of grounds for interference with the impugned order.
9. The Court emphasized the waiver of rights by the appellant through conduct and compared the case with recent Supreme Court decisions on arbitration laws.
10. The judgment highlighted the distinction between the present case and past decisions, emphasizing the need for compliance with arbitration procedures and the limited scope of challenging arbitrator notices post-appointment.

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