{"id":256077,"date":"2002-12-13T00:00:00","date_gmt":"2002-12-12T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/bhaskar-wires-private-limited-vs-union-of-india-uoi-and-ors-on-13-december-2002"},"modified":"2018-03-01T02:07:53","modified_gmt":"2018-02-28T20:37:53","slug":"bhaskar-wires-private-limited-vs-union-of-india-uoi-and-ors-on-13-december-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/bhaskar-wires-private-limited-vs-union-of-india-uoi-and-ors-on-13-december-2002","title":{"rendered":"Bhaskar Wires Private Limited vs Union Of India (Uoi) And Ors. on 13 December, 2002"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Bhaskar Wires Private Limited vs Union Of India (Uoi) And Ors. on 13 December, 2002<\/div>\n<div class=\"doc_citations\">Equivalent citations: 102 (2003) DLT 870<\/div>\n<div class=\"doc_author\">Author: C Mahajan<\/div>\n<div class=\"doc_bench\">Bench: C Mahajan<\/div>\n<p id=\"p_1\">JUDGMENT<\/p>\n<p> C.K. Mahajan, J.\n<\/p>\n<p id=\"p_1\"> 1. By way of this petition, the applicant seeks<br \/>\nappointment of an independent Arbitrator in terms of<br \/>\n<a href=\"\/doc\/596725\/\" id=\"a_1\">Section 11(6)<\/a> of the Arbitration and <a href=\"\/doc\/1306164\/\" id=\"a_1\">Conciliation Act<\/a>,<br \/>\n1996 for adjudication of disputes and differences<br \/>\nbetween the parties.\n<\/p>\n<p id=\"p_2\"> 2. Pursuant to tender notice issued by<br \/>\nrespondent No. 1, the petitioner submitted its offer to<br \/>\nrespondent No. 2 for supply of 3000 M.T. of HTS wire<br \/>\nof 3X3 mm strand (herein after called as Goods) as per<br \/>\nspecification IS:6006\/1983. By letter dated<br \/>\n30.12.1997, the respondent No. 2 made a counter offer<br \/>\nto the petitioner for supply of 3000 MT of HTS wire as<br \/>\nper specification IS-1785 (Part I) 1983 and IS-6006<br \/>\n(1983) as per their terms and conditions. The<br \/>\npetitioner accepted the offer vide letter dated<br \/>\n2.1.1998. Formal contract was sent to the petitioner<br \/>\nby letter dated 18.2.1998 for making supplies in terms<br \/>\nthereof. The contract contained an arbitration clause<br \/>\nwhich provides for reference of disputes or<br \/>\ndifferences to the sole arbitration of a Gazetted<br \/>\nRailway Officer appointed to be the Arbitrator by the<br \/>\nGeneral Manager. The said contract was duly sealed,<br \/>\nsigned and executed by the petitioner and was<br \/>\ndelivered to the office of respondent along with its<br \/>\nletter dated 23.2.1998. In terms of said contract,<br \/>\nthe Railway Board issued release order upon the<br \/>\npetitioner for supply of said 3000 Metric Tones of<br \/>\nGoods in favor of Central Railway to the extent of<br \/>\n2000 Metric Tonnes and South Eastern Railway to the<br \/>\nextent of 1000 Metric Tones. The respective Zonal<br \/>\nRailways issued dispatch instructions from time to<br \/>\ntime for supply of Goods. The petitioner manufactured<br \/>\nthe goods in terms of instructions received. The<br \/>\nGoods were required to be inspected by the concerned.<br \/>\nSleeper Manufacturing Units. The concerned sleeper<br \/>\nmanufacturing units failed and neglected to carry out<br \/>\nsuch inspections. The petitioner called upon the<br \/>\nconcerned sleeper manufacturing units to make<br \/>\nfinancial arrangement for making payment of the Goods<br \/>\nin terms of the contract, which they wrongfully and<br \/>\nillegally failed and neglected to do so. In part<br \/>\ncompliance of aforesaid order placed by the Railway<br \/>\nBoard, the sleeper manufacturing units attached to the<br \/>\nSouth Eastern Railway lifted only 36 Metric Tonnes of<br \/>\nthe Goods and the sleeper manufacturing units attached<br \/>\nto the Central Railway lifted 1347 Metric Tonnes of<br \/>\nthe Goods. 1617 Metric Tonnes of the Goods were<br \/>\nremain to be lifted by the said Zonal Railways. The<br \/>\nrespondents failed to fulfill their contractual<br \/>\nobligations. Therefore, the contract could not be<br \/>\ncompleted within the stipulated period. Disputes and<br \/>\ndifferences arose between the parties. The petitioner<br \/>\ninvoked the arbitration clause by way of legal notice<br \/>\ndated 1.12.2000. The respondents failed to appoint<br \/>\nthe Arbitrator. hence the present petition.\n<\/p>\n<p id=\"p_3\"> 3. Notice was issued to the respondents by<br \/>\norder dated 20th December, 2001. The respondents<br \/>\nentered appearance on 9th July, 2002 and it was<br \/>\nbrought to the notice of the Court that an Arbitrator<br \/>\nwas appointed by the respondents on 7th March, 2002.<br \/>\nTill date, no reply has been filed by the respondents.\n<\/p>\n<p id=\"p_4\"> 4. Counsel for the respondents, however,<br \/>\nresisted petition on the ground that in terms of<br \/>\narbitration agreement between the parties, Gazetted<br \/>\nOfficer of the Railway is required to be appointed as<br \/>\nan Arbitrator. He states that this Court cannot<br \/>\nappoint an independent Arbitrator in the first<br \/>\ninstance. He placed reliance on a decision of Kerala<br \/>\nHigh Court in  <a href=\"\/doc\/1534480\/\" id=\"a_2\">Bel House Associates Pvt. Ltd. v.<br \/>\nThe General Manager, Southern Railway, Madras and<br \/>\nAnr<\/a>. AIR 2001 Kerala 163 wherein the court held<br \/>\nthat the Court must implement the procedure agreed<br \/>\nupon between the parties for appointment of an<br \/>\nArbitrator. He, however, conceded that Arbitrator was<br \/>\nnot appointed by the respondents within 30 days from<br \/>\nthe date of invocation of arbitration clause and prior<br \/>\nto filing of the petition. The Arbitrator was<br \/>\nappointed during the pendency of the petition.\n<\/p>\n<p id=\"p_5\"> 5. Counsel for the petitioner contends that the<br \/>\nrespondents had no power to appoint an Arbitrator<br \/>\nduring the pendency of the petition as they had<br \/>\nforfeited their right to do so. In support of his<br \/>\ncontention, he placed reliance on the decision of<br \/>\nSupreme Court in  <a href=\"\/doc\/41226024\/\" id=\"a_3\">Datar Switchgears Ltd. v. Tata<br \/>\nFinance Ltd. and Anr. JT<\/a> 2000 (Suppl. 2) SC 226 wherein<br \/>\nthe Supreme Court observed as under:-\n<\/p>\n<p id=\"p_6\">  &#8220;So far as cases falling under <a href=\"\/doc\/596725\/\" id=\"a_4\">Section 11(6)<\/a><br \/>\nare concerned &#8211; such as the one before us &#8211; no<br \/>\ntime limit has been prescribed under the Act,<br \/>\nwhereas a period of 30 days has been<br \/>\nprescribed under <a href=\"\/doc\/712376\/\" id=\"a_5\">Section 11(4)<\/a> and <a href=\"\/doc\/596725\/\" id=\"a_6\">Section<br \/>\n11(5)<\/a> of the Act. In our view, therefore, so<br \/>\nfar as <a href=\"\/doc\/596725\/\" id=\"a_7\">Section 11(6)<\/a> is concerned, if one<br \/>\nparty demands the opposite party to appoint an<br \/>\narbitrator and the opposite party does not<br \/>\nmake an appointment within 30 days of the<br \/>\ndemand, the right to appointment does not get<br \/>\nautomatically forfeited after expiry of 30<br \/>\ndays. If the opposite party makes an<br \/>\nappointment even after 30 days of the demand,<br \/>\nbut before the first party has moved the Court<br \/>\nunder <a href=\"\/doc\/596725\/\" id=\"a_8\">Section 11<\/a>, that would be sufficient.<br \/>\nIn other words, in case arising under <a href=\"\/doc\/596725\/\" id=\"a_9\">Section<br \/>\n11(6)<\/a>, if the opposite party has not made an<br \/>\nappointment within 30 days of demand, the<br \/>\nright to make appointment is not forfeited but<br \/>\ncontinues, but an appointment has to be made<br \/>\nbefore the former files application under<br \/>\n<a href=\"\/doc\/596725\/\" id=\"a_10\">Section 11<\/a> seeking appointment of an<br \/>\nArbitrator. Only then the right of the<br \/>\nopposite party ceases&#8230;..&#8221;\n<\/p>\n<p id=\"p_7\"> 6. I have heard learned counsel for the<br \/>\nparties, perused the petition and considered the<br \/>\ndocuments on record. I have also perused the<br \/>\ndecisions relied upon by counsel for the parties.\n<\/p>\n<p id=\"p_8\"> 7. This Court in the case of  <a href=\"\/doc\/682973\/\" id=\"a_11\">B.W.L. Ltd. v.<br \/>\nU.O.I. (AA No<\/a>. 162\/2001) decided on dated 10th May,<br \/>\n2002 had appointed an independent Arbitrator as the<br \/>\ndefendants failed to appoint an Arbitrator in terms of<br \/>\nArbitration clause within the statutory period of 30<br \/>\ndays. This Court held that the respondent had<br \/>\nforfeited its right to appoint an Arbitrator and<br \/>\nappointed an Arbitrator.\n<\/p>\n<p id=\"p_9\"> 8. In light of above, I am of the view that the<br \/>\ndecision relied upon by counsel for the respondent is<br \/>\nof no help in view of the decision of Supreme Court in<br \/>\n Datar Switchgears Ltd. and the decision of this Court<br \/>\nin B.W.L. Ltd. (supra). The respondents have<br \/>\nforfeited their right to appoint the Arbitrator as<br \/>\nthey failed to appoint Arbitrator within 30 days and in<br \/>\nany case before filing of the petition.\n<\/p>\n<p id=\"p_10\"> 9. Following the aforesaid decision of Supreme<br \/>\nCourt and this Court, the petition is allowed. The<br \/>\nappointment of Mr. C.P. Tayal, Chief Track Engineer,<br \/>\nby the respondent is revoked. Mr. Justice A.K.<br \/>\nSrivastava (Retd) is appointed as an Arbitrator for<br \/>\nadjudication of disputes and differences between the<br \/>\nparties. The Arbitrator shall fix his own fee.\n<\/p>\n<p id=\"p_11\"> 10. A copy of the order be sent to the<br \/>\nArbitrator for information.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Bhaskar Wires Private Limited vs Union Of India (Uoi) And Ors. on 13 December, 2002 Equivalent citations: 102 (2003) DLT 870 Author: C Mahajan Bench: C Mahajan JUDGMENT C.K. Mahajan, J. 1. By way of this petition, the applicant seeks appointment of an independent Arbitrator in terms of Section 11(6) of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-256077","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bhaskar Wires Private Limited vs Union Of India (Uoi) And Ors. on 13 December, 2002 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/bhaskar-wires-private-limited-vs-union-of-india-uoi-and-ors-on-13-december-2002\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bhaskar Wires Private Limited vs Union Of India (Uoi) And Ors. on 13 December, 2002 - Free Judgements of Supreme Court &amp; 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