2010 (1) TMI 1252 - HC - Indian Laws

Summary

Issues involved: Petition for appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.

Details of the Judgment:

1. The applicant, a company, filed a petition under Section 11 of the Arbitration and Conciliation Act, 1996, seeking the appointment of an arbitrator due to a dispute with respondent companies regarding the development of a City Centre Project in Ludhiana.

2. The respondent Nos.1 to 4, members of the Consortium bidding for the project, and respondent no.5, Ludhiana Improvement Trust, were involved in the dispute. The applicant had purchased property from the respondents and an arbitration clause was included in the agreement.

3. Respondent Nos.1 to 4 failed to appoint an arbitrator, leading to the petition. Respondent no.5 objected to the appointment, citing fraud and forgery in the agreement, leading to a criminal case being filed against officials of Ludhiana Improvement Trust.

4. The respondent no.5 challenged the jurisdiction of the arbitrator, arguing that the agreement was tainted by fraud and forgery. However, the Court held that such issues fall under the arbitrator's jurisdiction as per Section 16 of the Arbitration and Conciliation Act, 1996.

5. The Court dismissed the objections raised by respondent no.5 and appointed Hon'ble Ms. Justice Usha Mehra as the sole arbitrator to adjudicate the dispute between the parties, with the arbitrator to determine her fees.