9911796707
TMI Blog2015 (9) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... ated and the respondent acted as the lead bidder. The contract was awarded in favour of the respondent by the MTNL. On 9th April, 2007, the parties entered into a Supply Contract for the aforesaid project. According to the petitioner, though it had complied with all the terms and conditions of the said supply contract and had shipped/delivered all equipments on time, the respondent had failed to make full payment of the amounts due and an amount quantified at USD 13,390,000 is due and payable. The petitioner sent a legal notice dated 28th November, 2014 calling upon the respondent to make payment of the outstanding dues along with interest thereon within seven days failing which it was stated in the notice that the petitioner would be invok ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the Supply Contract so as to be entitled to the amounts as claimed. 3. The Court has heard the learned counsels for the parties. 4. Under Section 15(2) of the Act in a situation where the mandate of an arbitrator terminates, a substitute arbitrator is required to be appointed according to the rules that were applicable to the appointment of the arbitrator who is replaced. In Yashwith Constructions (P) Ltd. Versus Simplex concrete Piles India Ltd. and another [(2006) 6 SCC 204], the term 'rules' appearing in Section 15(2) of the Act has been understood to be referring to the provisions for appointment contained in the arbitration agreement or any rules of any institution under which the disputes are to be referred to arbitration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equired to be appointed according to the rules that were applicable to the appointment of the original arbitrator. This is the mandate of Section 15(2) of the Act. It was, therefore, incumbent on the petitioner to give notice and explore the possibility of naming an arbitrator by mutual consent and only on failure thereof the present application under Section 11(6) of the Act could/should have been filed. The above recourse is required to be followed by virtue of the provisions of Section 15(2) of the Act and the decision of this Court in Yashwith Constructions (P) Ltd. (supra). Admittedly, the same had not been followed. In these circumstances, the Court will understand the present application/arbitration petition to be premature. It is ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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