ORDER
This petition is filed under Section 11(6) r/w Section 14(2) of the Arbitration and Conciliation Act, 1996.
2. A dispute arose between the Petitioner and the Respondent in relation to the issuance of a work order to the Petitioner by the Respondent. By earlier order dated 16.06.2017 in O.P.No.235 of 2017, this Court directed the General Manager of the Southern Railway to nominate an arbitrator. Pursuant thereto, a Sole Arbitrator was nominated. However, it is stated that tardy progress was made in the arbitral proceedings. The Petitioner contends that the Sole Arbitrator directed him to file the claim statement only by order dated 21.12.2018 and that he filed the claim statement on 21.01.2019. However, the Respondent states that the Petitioner/Claimant was responsible for the delay in filing the claim statement. In any event, by the minutes of proceedings held on 25.02.2021, the Sole Arbitrator recorded that the arbitral proceedings stand P age No.2 / 5
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terminated in view of the lapse of the time limit specified under Section 29-A of the Arbitration and Conciliation Act, 1996. Therefore, it is not necessary to pass orders on the petition insofar as the request for termination of mandate is concerned.
3. As regards the request for appointment of an arbitrator, it is submitted on behalf of the Respondent that the amounts involved are only about Rs.3 lakhs and, therefore, the Petitioner may be directed to select one person out of the panel of five persons provided by the Respondent. The Petitioner is, however, unwilling to accept any person from the panel provided by the Respondent.
4. The arbitration clause is contained in Clause 39 of the Agreement between the parties. Sub Clause 39.4.1 provides for the appointment of a Sole Arbitrator who shall be either the General Manager or gazetted officer of the Railways not below the grade of JA grade nominated by the General Manager in that behalf. After the amendment to the Arbitration and Conciliation Act 1996 by Act 3 of 2016, sub clause 39.4.1 cannot be enforced. In these P age No.3 / 5
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circumstances, this Court is inclined to appoint a neutral person as an arbitrator.
5. Accordingly, Arbitration O.P.(Com. Div.)No.127 of 2021 is allowed by appointing Mr.B.Ramalingam, retired District Judge, Flat No.301, Casagrand, Noble Street, Alandur, Chennai - 600 016 as the Sole Arbitrator to adjudicate the dispute between the parties. The Sole Arbitrator is directed to enter upon reference and adjudicate the dispute in accordance with law. It is open to the Sole Arbitrator to fix the fees and expenses in connection with such arbitral proceedings.
13.12.2021
Internet: Yes/No Index: Yes/No rrg
SENTHILKUMAR RAMAMOORTHY J.
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rrg Arb.O.P.(Comm. Div.) No.127 of 2021
13.12.2021
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