9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 1457 - HC - Indian LawsRetention of certain goods as security - claiming release of goods - HELD THAT - The fact of a dispute between the parties existing relatable to the arbitration agreement is clear from the material placed before the Court. The parties hence fall within Section 11(6) of the 1996 Act and an arbitrator must be appointed in terms of the arbitration agreement. Application is accordingly allowed and disposed of by appointing Mr. S. Muralidhar, former Chief Justice of the Orissa High Court to act as the Arbitrator subject to the learned Arbitrator communicating his consent in the prescribed format to the Registrar, Original Side of this Court within three weeks from date.
Issues involved: Dispute over coal procurement agreement, existence of arbitration clause, default in payments, retention of goods as security, appointment of arbitrator.
The judgment by the High Court of Calcutta pertains to a dispute arising from an Agreement dated 1st April, 2014, where the petitioner was to procure coal from the respondent sourced from the open market. The petitioner contends that the respondent acted as an agent to procure and supply the coal. The Agreement includes an arbitration clause at Clause 23.0, specifying arbitration under the 1996 Act. The Court observed that the parent Agreement from 2014 was extended multiple times, notably in 2016, 2017, 2018, and 2019, with changes in payment rates and interest. Each extension explicitly references the parent Agreement, indicating continuity rather than new terms. Regarding defaults in 2019 and subsequent repayment of Rs.13 crores by the petitioner in 2023, a disagreement exists between the parties on this matter. The current dispute centers on the respondent holding certain goods as security, while the petitioner seeks their release. Given the clear existence of a dispute related to the arbitration agreement, falling under Section 11(6) of the 1996 Act, the Court ordered the appointment of Mr. S. Muralidhar, former Chief Justice of the Orissa High Court, as the Arbitrator. The appointment is subject to the arbitrator's consent within three weeks, with the petitioner's advocate instructed to communicate this order by a specified date. Separate Judgment: None
|
