MS TERRESTRIAL FOODS LIMITED v. SANSKRITI FOOD EQUIPMENTS EXIM PRIVATE LIMITED

1. The present petition under Section 11(5) of the Arbitration and Conciliation Act, 1996 (hereinafter referred as the ‘A&C Act’) seeks constitution of an Arbitral Tribunal to adjudicate the disputes between the parties.

SACHIN DATTA, J. (Oral)

2. The disputes between the parties have arisen in the context of a Purchase Order dated 17.12.2022 entered between the parties.

3. The terms and conditions incorporated in the said Purchase Order admittedly contains the following clauses:- “23.

ARBITRATION In the event of any dispute or difference arising under this Order, it shall be tried to be resolved amicably failing such amicable resolution, same shall be resolved through the arbitration process in accordance with the provisions of Arbitration and Conciliation Act, 1996 and the rules there under and any statutory modifications thereof shall apply. The arbitration proceedings shall take place in New Delhi and the Order is governed by Indian Laws. The job work under this Order shall, however, continue during the arbitration proceedings.

24.

4. It is the case of the petitioner that it has made the payment towards the purchase of machinery in terms of Clause-7 of the Purchase Order. However, it is alleged that the respondent has been unsuccessful in commission and trial of the same and in discharging other obligations under the agreement. Consequently, disputes have arisen between the parties.

5. A notice dated 03.07.2024 under Section 21 of the A&C Act was addressed to the respondent and a copy of it is also marked to its Director. However, no response thereto has been sent by the respondent.

6. Learned counsel for the respondent, while controverting the contentions of the learned counsel for the petitioner on the merits of the matter, does not dispute the existence of the Arbitration Agreement. He accedes to appointment of an independent Sole Arbitrator to adjudicate the disputes between the parties.

7. In the circumstances, there is no impediment in appointing an independent sole arbitrator for adjudicating the disputes between the parties as prayed for, as mandated in terms of the judgments of the Supreme Court in SBI General Insurance Co. Ltd. v. Krish Spinning, 2024 INSC 532 and Interplay between Arbitration Agreements under the Arbitration & Conciliation Act, 1996 & the Indian Stamp Act, 1899, In re, 2023 SCC OnLine SC 1666.

8. Accordingly, Ms. Manika Tripathi, Advocate (Mob- +919811831835) is appointed as the Sole Arbitrator to adjudicate the disputes between the parties under the aforesaid agreements.

9. The respondent shall be entitled to raise appropriate objections as regards jurisdiction, if any, before the learned Sole Arbitrator which shall be duly considered by the learned sole arbitrator on merits

10. The learned Sole Arbitrator may proceed with the arbitration proceedings subject to furnishing to the parties requisite disclosure as required under Section 12 of the A&C Act; and in the event there is any impediment to the appointment on that count, the parties are given liberty to file an appropriate application in this court.

11. The learned Sole Arbitrator shall be entitled to fee in accordance with IVth

12. All rights and contentions of the parties in relation to the claims/counter-claims are kept open, to be decided by the learned Arbitrator on their merits, in accordance with law. Schedule to the A&C Act; or as may otherwise be agreed to between the parties and the learned Sole Arbitrator.