Rajasthan State Cooperative Oilseeds Growers Federation Limited v. Bhilwara Sahakari Upbhokta Wholesale Bhandar Ltd.
2025-01-03
SUDESH BANSAL
body2025
DigiLaw.ai
ORDER : 1. This is an arbitration application filed by the applicant under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "A&C Act") for appointment of an Arbitrator to adjudicate/ resolve the dispute between the parties arisen in respect of Marketing Agreement dated 29.09.2010. 2. The arbitration application has been replied by the respondents. 3. Heard counsel for both parties and perused the respective pleadings and documents placed on record. 4. It appears that the applicant-Federation appointed the respondent as depot agent for storage/ sale of its products i.e.various edible oilseeds at District Bhilwara and a Marketing Agreement dated 29.09.2010 was entered into between the parties. The applicant has raised a claim of Rs. 73,35,113/- against the respondent, alleging inter alia that payment of two e- way bills dated 31.12.2022 and 16.01.2023 has not been made by the respondent whereas respondent, in its reply has categorically denied to have received both consignments of e-way bills at its depot. Although, respondent itself in the reply has pointed out a variance in the stock verification report of Rs.18,64,380/-. Thus, a dispute in respect of delivery of two consignments to the respondent pursuant to e-way bills dated 31.12.2022 and 16.01.2023 and the settlement of claim against such bills as also the accounts of the applicant and respondent has arisen. 5. The parties are not in dispute in respect of execution of Marketing Agreement dated 29.09.2010 and about the incorporation of Clause 26 therein, which deals with the resolution of disputes and permits that at first instance, parties shall make every efforts to resolve the dispute amicably but if the dispute is not resolved amicably, then same may be referred by either of the parties to the arbitration for adjudication. The Clause 26 further stipulates that the decision of the Arbitrator shall be final and binding on the parties and the Arbitrator shall be appointed by the Administrator of the applicant-Federation. For ready reference Clause 26 of the Marketing Agreement reads as under:- " RESOLUTION OF DISPUTES Depot Agent and federation shall make every efforts to resolve amicably by direct informal negotiation any disagreement or dispute between them under or in connection with this agreement.
For ready reference Clause 26 of the Marketing Agreement reads as under:- " RESOLUTION OF DISPUTES Depot Agent and federation shall make every efforts to resolve amicably by direct informal negotiation any disagreement or dispute between them under or in connection with this agreement. If after thirty (30) days from the commencement of such informal negotiation depot agent and the Federation are unable to resolve dispute amicably, either party may refer the dispute to the formal mechanism of adjudication/ arbitration. The same shall be referred to the sole arbitration of the person appointed by the Administrator of Federation as Arbitrator. There will be no objection to any such appointment by the depot agent. The decision of arbitrator shall be final and binding on both the parties." 6. It appears from the record that the applicant-Federation vide Letter dated 13.02.2024 and 19.02.2024, invoked the Arbitration Clause, stating inter alia, that the dispute between the parties has not been resolved amicably, therefore, same be referred to the Arbitrator and simultaneously the name of Arbitrator was also suggested but in response thereto by the respondent, through Reply Letter dated 15.02.2024, did not extend consent on the suggested name of Arbitrator, rather it was suggested that any other Arbitrator, having expertise in GST/ Practicing as Chartered Accountant should be appointed. In the Reply Letter, the claim of the applicant in reference to the two consignments was also denied by the respondent on merits. 7. Be that as it may, this is an undisputed fact that the Arbitrator, in terms of Clause 26 of the Marketing Agreement dated 29.09.2010, could not be appointed with the consent of parties to adjudicate/ resolve the dispute between the parties, hence, in view of Section 10(2) of the A&C Act as also following the dictum of Hon'ble Supreme Court in case of Perkins Eastman Architects DPC Vs. HSCC (India) Ltd. [ (2020) 20 SCC 760 ] an independent, impartial and neutral Arbitrator is required to be appointed. The Arbitration Clause in respect of appointment of nominated Arbitrator by the Applicant-Federation is not binding upon the Court, hence, counsel for both parties do agree for appointment of an independent Arbitrator by the Court. 8. As a final result, the instant arbitration application succeeds and is hereby allowed. This Court appoints Hon’ble Mr.
The Arbitration Clause in respect of appointment of nominated Arbitrator by the Applicant-Federation is not binding upon the Court, hence, counsel for both parties do agree for appointment of an independent Arbitrator by the Court. 8. As a final result, the instant arbitration application succeeds and is hereby allowed. This Court appoints Hon’ble Mr. Justice Alok Sharma, former judge of the Rajasthan High Court, Address:- K-39, Income Tax Colony, Tonk Road, Jaipur; Mobile No.9829064064; E-mail:- asharma.jaipur57@gmail.com, as a sole Arbitrator, to adjudicate the dispute between parties in accordance with provisions of the Arbitration and Conciliation Act, 1996. 9. The appointment of the Sole Arbitrator is subject to the declarations being made under Section 12 of the Arbitration & Conciliation Act, 1996 with respect to independence and impartiality, and the ability to devote sufficient time to complete the arbitration within the prescribed period. 10. The arbitration fee of the Sole Arbitrator shall be payable in accordance with the provisions contained in the Manual of Procedure for Alternative Dispute Resolution, 2009 as amended by the Manual of Procedure for Alternative Dispute Resolution (Amendment), 2017 vide notification dated 23.03.2017 read with 4 th Schedule appended to the Act of 1996 or as determined by the Arbitrator with consensus of parties. 11. The Registry is directed to intimate Arbitrator Hon’ble Mr. Justice Alok Sharma (Former Judge), for his approval and consent to act as Arbitrator. 12. All other issues may be raised by the parties before the Arbitrator, which shall be considered in accordance with law. 13. Since as per Section 29A of the Arbitration and Conciliation Act, 1996, the arbitration proceedings are required to be concluded within scheduled time as stipulated therein, it is expected from the parties to appear before the Arbitrator on 30.01.2025 or any other date as informed by the Arbitrator to parties or agreed between parties with the consent of Arbitrator, and further parties shall provide their respective E-mail/ Contact Number/ Mobile Number as also of their authorized representatives/lawyers, appearing on their behalf before the Arbitration Tribunal, in order to facilitate the Arbitrator to send information to the parties, whenever required. The information sent by the Arbitrator, on such address/ E-mail/ cellphone of the parties/ their authorized representatives/lawyers, shall be treated as sufficient unless same is not changed. 14. The Arbitration Application stands disposed of accordingly.