Kalpana Chemicals Limited. Vs Oil and Natural Gas Corporation Ltd. and Others

Uttarakhand High Court 10 Sep 2010 Arbitration Application No. 16 of 2008 (2010) 09 UK CK 0193
Bench: Single Bench
Acts Referenced

Judgement Snapshot

Case Number

Arbitration Application No. 16 of 2008

Hon'ble Bench

Barin Ghosh, C.J

Acts Referred
  • Arbitration and Conciliation Act, 1996 - Section 11

Judgement Text

Translate:

Barin Ghosh, C.J.@mdashThere cannot be any dispute that disputes and differences between the parties hereto have arisen in relation to a contract in writing. The said contract incorporates an arbitration clause and, thereby, either of the parties to the arbitration can refer such disputes to one of the arbitrators in the Department of Public Enterprises to be nominated by the Secretary to the Government of India, in-charge of Bureau of Public Enterprises. Therefore, no sooner the disputes and differences in the instant case arose, it was obligatory on the part of the applicant to approach the Secretary to the Government of India, In-charge of Bureau of Public Enterprises, to nominate an arbitrator in the Department of Public Enterprises. The applicant, however, moved the respondent - Oil and Natural Gas Corporation Ltd. and requested the said respondent to appoint an arbitrator. On refusal on the part of the Oil and Natural Gas Corporation Ltd., the applicant approached the Chief Justice of Hon''ble Andhra Pradesh High Court u/s 11 of the Arbitration and Conciliation Act, 1996 for appointment of an arbitrator. When the matter was, thus, pending before the Chief Justice of the Hon''ble Andhra Pradesh High Court, Oil and Natural Gas Corporation Ltd., on 6th December, 2007, purported to nominate Sri Y.B. Sinha, former Director (Exploration)-O.N.G.C. to act as sole arbitrator in the case. Subsequent thereto, on 19th December, 2007, the application of the applicant, which was pending before the Chief Justice of Hon''ble Andhra Pradesh High Court, was rejected on the ground that the jurisdiction pertaining to the said application vests in Uttarakhand.

2. In the counter affidavit filed by Oil and Natural Gas Corporation Ltd., a request has been made to appoint Sri Y.B. Sinha, former Director (Exploration) - ONGC, House No. 633, Street No. 41, Rajendra Nagar, Dehradun (Uttarakhand) as sole arbitrator in the case for adjudication of disputes between the parties hereto. However, in the counter affidavit, it has not been stated whether the said Y.B. Sinha is a member of the Department of Public Enterprises or not. In terms of the arbitration agreement between the parties, the sole arbitrator, to be nominated, must be in the Department of Public Enterprises. Furthermore, the Secretary to the Government of India, in-charge of Bureau of Public Enterprises, alone, has been authorised by the parties to nominate the arbitrator. The fact remains, as yet, the applicant has not approached the Secretary to the Government of India, In-charge of Bureau of Public Enterprises and, accordingly, the learned Counsel for Oil and Natural Gas Corporation Ltd. submitted that the present application, on the face of it, is not maintainable for the applicant has not yet approached the Secretary to the Government of India, In-charge of Bureau of Public Enterprises for nomination of an arbitrator in the Department of Public Enterprises.

3. In view of the fact that in the counter affidavit filed by Oil and Natural Gas Corporation Ltd., it has agreed to appointment of an arbitrator and purported to nominate an arbitrator, suggests that disputes and differences inter se the parties have cropped-up, which require to be sorted out through arbitration in terms of the arbitration agreement between the parties. Accordingly, it would be appropriate to request the Secretary to the Government of India, in-charge of Bureau of Public Enterprises to nominate an arbitrator in the Department of Public Enterprises for adjudication of the disputes inter se the parties, pertaining to or touching the agreement between the parties. The Secretary to the Government of India, In-charge of Bureau of Public Enterprises, is requested to nominate the arbitrator as quickly as possible, but not later than one month from the date of service of a copy of this order upon him. The arbitrator, to be nominated, is directed to hold his first sitting within one month from the date of nomination and to conclude the arbitration proceedings as quickly as possible thereafter.

4. The application is, accordingly, disposed of.

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