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2021 DIGILAW 1275 (BOM)

Cottage Industries Exposition Ltd. , Rep. By Its Aut. Rep. , Sheik Abodin v. Decathlon Sports Inida Pvt. Ltd

2021-09-30

M.S.SONAK

body2021
JUDGMENT M.S. Sonak, J. - Heard Mr. Ryan Menezes for the applicant and Mr. Purushottam Karpe for the respondent. 2. Disputes have arisen between the parties in the context of Lease Deed dated 02/05/2019. Clause 23 of this deed, provides for dispute resolution and jurisdiction. The same reads as follows : "23.1 Any dispute, difference, claim or controversy arising out of or in connection with this Lease Deed/Lease Deed, or interpretation of any provisions hereof or any breach or alleged breach thereof, shall be first referred to mediation conducted by a sole mediator, appointed mutually by the Parties, and in accordance with the Arbitration & Conciliation Act, 1996. 23.2 If the mediation is abandoned by the mediator or is otherwise concluded without the dispute or difference being resolved, then such dispute difference or controversy shall be referred to and determined by arbitration as per the Arbitration & Conciliation Act, 1996 and by, an arbitration panel comprising of 3 (three) arbitrators. The arbitration panel shall comprise of (one) arbitrator each appointed by the Lessor and Lessee and such arbitrators shall appoint the 3rd arbitrator. The arbitration proceedings shall be conducted in Goa. The language of the proceedings shall be English. The decision of the arbitration panel shall be final and binding on the Parties." 3. Mr. Karpe, the learned Counsel for the respondent points out that the pre-condition to be fulfilled before any arbitrator could be appointed, was reference to mediation, conducted by a sole arbitrator appointed mutually by the parties. He points out that in this case, there was not a single letter proposing resolution of the disputes by mediation. 4. Mr. Menezes, the learned Counsel for the applicant admits that the letters do not make any reference to mediation. However, he submits that from the correspondence on record, it is clear that the disputes between the parties cannot be sorted out through mediation. He relies on Demerara Distilleries Private Limited and another vs. Demerara Distillers Limited (2015) 13 SCC 610 to submit that in a similar case, a similar objection was not accepted by the Hon'ble Apex Court. 5. In the present case, clause 23.1 is quite clear. In that, the parties had agreed that the dispute, if any between them, will be first referred to mediation conducted by a sole mediator, appointed mutually by the parties and in accordance with the Arbitration & Conciliation Act, 1996. 5. In the present case, clause 23.1 is quite clear. In that, the parties had agreed that the dispute, if any between them, will be first referred to mediation conducted by a sole mediator, appointed mutually by the parties and in accordance with the Arbitration & Conciliation Act, 1996. There is nothing on record to indicate that any notice was given or any efforts were made to sort out the matter through mediation. Therefore, at this stage, this application seeking appointment of an arbitrator appears to be premature. 6. The decision in the case of Demerara Distilleries Private Limited (supra) turns on the peculiar facts which are not comparable to the facts of the present case. Here, the matter is at the initial stage and it is possible for the parties to comply with Clause 23.1, which is a contract entered into by them for the purposes of dispute resolution. 7. The learned Counsel for the parties, on instructions, propose the name of Senior Advocate of this Court Shri R.G. Ramani to be the Mediator. Mr. Ramani, who is present in the Court, agrees to mediate in the matter and thereby assist the parties in resolving the disputes which have arisen. 8. Accordingly, with the consent of the learned Counsel for the parties, Mr. R.G. Ramani, Senior Advocate is appointed as a Mediator. Mr. Ramani is requested to mediate in the matter and take necessary steps to dispose of the mediation as expeditiously as possible. The parties will have to bear the fees of the Mediator, equally. 9. This application is disposed of as premature by making the aforesaid order and appointing Mr. R.G. Ramani as a Mediator, with the consent of the learned Counsel for the parties. 10. All concerned to act on an authenticated copy of this order.