2016 (7) TMI 1056

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.... order the designated Judge allowed the application under Section 11 of the Act and appointed a former Judge of that Court as the Arbitrator after holding that the appellants had forfeited their right to appoint railway officers as arbitrators in terms of clause 64(3)(a)(ii) of the agreement. 2. According to Ms. Kiran Suri, learned senior counsel for the appellants the impugned order suffers from apparent error of fact on account of misreading or non-reading of the relevant clause of the Agreement, i.e., clause 64(3)(a)(ii) which requires the contractor/respondent to make a written demand for arbitration and permits 60 days' time to the Railways from the date of receipt of the demand, to send a panel of more than three names of eligible ....

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....the Act and since that Section does not prescribe any time limit rather gives an unfettered discretion to appoint an arbitrator without any time limit, such power will stand forfeited only after the party making the demand has moved the Court under Section 11 and not on mere expiry of the notice period of 30 days. It is appellants' stand that in view of stipulations in the relevant clause providing for arbitration, the respondent-contractor admittedly sent a notice demanding arbitration on 12.06.2013 which was served on the appellants on 14.06.2013 and hence it had to wait for 60 days for receipt of a panel of more than three names. Thereafter the contractor had to suggest two names for appointment of his nominee arbitrator within 30 days. ....

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....ractor by sending a panel containing more than three names out of which the contractor has to suggest at least two names to the Railways which has to appoint one out of them as the contractor's nominee. The relevant dates are also not in dispute. Since the notice for appointment of arbitrators dated 12.06.2013 was served on the railways on 14.06.2013, the contractor had to respect the terms of the agreement which was unrepudiated and to wait for a period of at least 60 days before Section 11 application could have been filed. Instead of waiting for 60 days the contractor/respondent preferred such application prematurely on 23.07.2013. The Railways sent a panel of 4 names to the respondent on 30.07.2013, well within 60 days limit. 6. In t....