Khillan & Company Pvt. Ltd. v. Bharat Sanchar Nigam Limited
2015-07-07
DHARAM CHAND CHAUDHARY
body2015
DigiLaw.ai
JUDGMENT : Dharam Chand Chaudhary, J. Heard. This petition has been filed with the following prayers: "I. The operation of Annexure P-12 by which the respondents have illegally and arbitrarily terminated the contract of BSNL franchisee of petitioner of Solan area may kindly be stayed till the legality of the same properly adjudicated by the competent court of law/Arbitrator in pursuance to agreement. II. That the respondents may kindly be restrained from allotting the franchisee of Solan area to some other person in place of petitioner till the final adjudication of the matter in controversy by the Arbitrator. III. The respondents may kindly be directed to allow the petitioner to work in Solan area as B.S.N.L. franchisee as per agreement P-2 till the decision of the dispute by the Arbitrator. IV. The respondents be restrained from effecting any recovery whatsoever from the running bills and any other recovery on the basis of letter dated 8.5.2015 and from the bank guarantee etc. 2. The petitioner is franchisee of respondent No. 1 Bharat Sanchar Nigam Limited and is engaged for providing telecom services in District Solan. The petitioner has been granted B.S.N.L. franchisee for Solan area by the respondent-Nigam. An agreement Annexure P-2 to this effect came to be executed between the parties on 18.07.2013. The terms and conditions on which the petitioner had to act as franchisee of the respondent-Nigam are contained in this agreement. It is during the currency of agreement, disputes have arisen. The respondent-Nigam has terminated the contract of franchisee with the petitioner vide Annexure P-12. The petitioner franchisee has already moved to the respondent-Nigam for appointment of Arbitrator to resolve the disputes vide notice Annexure P-13. The Arbitrator has not yet been appointed by the competent authority. Mr. Rajiv Jiwan, learned counsel representing the respondent-Nigam has stated at the Bar that the Arbitrator will be appointed by tomorrow. Also that, since the contract with the petitioner franchisee stood terminated, the petitioner can approach to the Arbitrator so appointed for redressal of his grievances. Mr. J.S. Bhogal, learned Senior Advocate representing the petitioner is not averse to approaching the Arbitrator, however, he further submits that impending appointment of the Arbitrator and submitting claim on behalf of the petitioner before the Arbitrator, interim protection as sought in this petition may be ordered to be extended in his favour. 3.
Mr. J.S. Bhogal, learned Senior Advocate representing the petitioner is not averse to approaching the Arbitrator, however, he further submits that impending appointment of the Arbitrator and submitting claim on behalf of the petitioner before the Arbitrator, interim protection as sought in this petition may be ordered to be extended in his favour. 3. On having considered the rival submissions and going through the record, particularly that the respondent-Nigam will appoint the Arbitrator by tomorrow, as stated by learned counsel at the Bar, there is no question of staying the execution and operation of order Annexure P-12, whereby the contract has been ordered to be terminated and also to put the petitioner back as franchisee of the respondent-Nigam, because on the cancellation of the contract, he is ceased to exist as such. A direction to the respondent-Nigam not to allot the franchisee of Solan area to anyone else till the Arbitrator is appointed and the petitioner submits its claims to the Arbitrator, would serve the ends of justice. 4. Consequently, this petition is ordered to be disposed of with a direction to the respondent-Nigam to appoint the Arbitrator by tomorrow. The petitioner- Contractor shall thereafter submit his claim before the Arbitrator so appointed and move an application under Section 17 of the Arbitration Act for seeking interim direction on or before 21st July, 2015. Till then the respondent-Nigam shall not allot the franchisee of Solan area to someone else and to encash the bank guaranteed furnished by the petitioner. 5. Pending applications, if any, shall also stand disposed of.