2008 Dat e ofdccision 22 A010 Pct it ioncre Raj eshSharm a v. I ndia I nfoline Securit ies Pvt Lt d Et c c0

The prescnt rcviSion pct it ion has been dircct ed by t he pet it ionerfor set t ino aside t he im pugnedorder dat cd 92008 which applicat ionm oved by t he pet it ionerunder Sect ion 80f t he Arbit rat ion and Conciliat ion Act 1996 st ood allowed has bcen allegedby t he applicantt hat an agrecm entwas bet wcen t he plaint iff and defendant s on 20802007 wit h an arbit rat ion clausc 1t was agreedt hat any disput e bet wcen part ies would bc set t lcd by arbit rat or Now t hrough t his applicat ionit lS prayedt hat t hc suit of t hc plaint iffbc dism issed and he bc direct ed t o approacht he arbit rat or I n rcply t hc inst ant applicat ionis rcsist cd on t hc ground t hat a fraud has becn eom m ilt cd wit h t hc plaint ifTby t he defendant com pany The fact regardingdct ailcd arbit rat ion clausc has been negat ed I t has been furt her avcrred t hat t he m at t er in disput ecan be resolved by Civil Court only and not by arbit rat or The applicant sare relyingofvagueand inapplicablcclause of arbit rat ion Rashm i 2013.01.15 15: 42 True Scanned Copy Of t he Original PHHC,Chandigarh Aft er hcaringt he I earned counsel for t he part ies t he t rial JOYTI RANI 2016.03.28 16:23 I attest to the accuracy and integrity of this document Court allowcd t hc appI icat ionand dism issed t hc suit of t hc plaint iH 4T 4 39 CeR N03329 of 2008 3 c3 C 0 C I C0 I Z Lr 08 3 Z m e 7144 1s I l 3 HoweverI ibert yt o approacht hc arbit rat or as pcr t heir agrecm entwas grant ede dissiit isfied wit h t he t he has filcd t he inst anl revision pct it ione I havc hcard I carned counscl t hc part iesand have gonc t hrought hc records of t he casc wit h t heir help Lcarned counscl t hc pct it ionerhas subm it t ed t hat m at t er can be referrcd t o t he Arbit rat or only in t he following condit ions are fulfillcd t hat t he agreem entshould bc in writ ing 9 21 t he part y should have agreed t o refcr any disput e presentor fut urelt o t hcm t o t hc dccision of a privat e Tribunal 31 The privat e Tribunal shouid be em poweredt o adj udicat c upon t he disput csI n im part ialm anncr givingdue opport unit yt o t he part iest o put fort h t heir casc before lt e 41The part ies should have agreedt hat t hc decision of t he Privat e lribunal in rcspcct of t hc disput cswill be binding on t hem e I t is cont ended t hat all t he four cont cnt ions cnvisagedI n aut horit y4I gdishCh I se Rum eOrs 2007ReCR Civill 860 fulfilled in t he prcsent caSCe So in t hese circum st anccs Rashm i 2013.01.15 15: 42 True Scanned Copy Of t he Original PHHC,Chandigarh t he I earncd t rial Court has wronglyheld t hat civil suit is not m aint ainable and m at t er is rcferablc t o t hc Arbit rat or JOYTI RANI 2016.03.28 16:23 I attest to the accuracy and integrity of this document 4 40 CR No3329 of 2008 4 1 1 1 cont ended t hat l ll arbit rat ionagreem entbet ween t he part iest here is clause21 which is rcproducedas under l U21eDisput e Rcsolut ion t CC 0 C I 0 I Z r I 08 m Z Anyciaim disput eor diffcrcncc arisingbet ween t he Part ies hcret o I rcspectof t h is Agrecm entor any cont ract sdealingsor t ransact ions pursuantherct o or right s obligat ionSt erm s or condit ions cont aincd in t his Agreem entor t hc int crpret at ionor const ruct ion of t his Agrecm entshall be subj cctt o t hc redrcssal procedureof t he Exchangcand shall bc subj ectt o t he gricvanccrcdrcssal proccdure t he Exchange and arbit rat ion procedurcasprescribcdby t hc Exchange bc subj ect t o t he Provisionse 99 I t is cont ended t hat from t he pcrusalof t hc said clause it lS not clear who shall be arbit rat or So in t hcsc circum st ances above said vague clausc of agrccm entcannot prcvaiI upon t o debar t he t o pursuc t he rem cdybefore t he Civil Court Learncd counsel t he pet it ionerhas fu rt hcr subm it t cd t hat t hcre are alI egat ionsof fraud m adc by t he pet it ioncrand t he sam e cannot bc adj udicat cdby t he arbit rat or and t o fort ify his argum cnt s I earned counscl t hc pet it ioncrhas rclied upon aut horit y L Radhakrishnuns Maest ro Enineernd Ols 241 ArblR 21OLSQ is furt her cont ended t hat in casc of vaguc clausc of JOYTI RANI 2016.03.28 16:23 I attest to the accuracy and integrity of this document arbit rat ion wit hout point ingout t hc nam e of arbit rat or or aut horit y I t Rashm i 2013.01.15 15: 42 True Scanned Copy Of t he Original PHHC,Chandigarh 441 CRe N03329 of 2008 1 40 1 5 1 r 0 C I C5 I Z C 08 7 Z 0m t o appointbot h appoint m cntand rcferencc havc t o bc wit h t he consent of bot h t hc part ies A unilat eral appoint m entof t he arbit rat or by one part ywit hout conscnt of ot her will be unaut horized and illegaland t he award givenby such arbit rat or will be nullit ybeing voidab4nit kland cannot bc cnforccd by Court s dcspit et hc obj ect ions under Art iclc 30 of t he part ybeingt im e barrcd by virt ue of Art icle 119 of t he Lim it at ion Act To support t his cont cnt ion I earned counsel for t he pct it ioncrhas relied upon aut horit y Dhurom a Prat hisht hunam v3 Madhok Const ruct ion Pvt Lt d 2004 41 RCR Ch 769 I n rcply t o t he abovc not cd subm issions t he learned counsel t hc respondcnthas subm it t ed t hat clausc 21 of t he agreem ent envisagedt hat any disput carisingout of t he cont ract shall be accordance rcad in wit h t he proccdureof of exchangcand shall bc subj ectt o arbit rat ion proccdurc as prcscribedby exist ingprovisions Thc respondenthas placedon t he rccord Anncxurc R5 and Annexure R which givest he dct ails who shall be t he arbit rat or and t he proccdure how t he arbit rat or shall dccide t he case t here I S no am biguit y I n t he t erm s of t he Cont ract is set t lcd I aw t hat when t hc part y has agreed t o reI ress t hcir grievancc by an arbit rat o t hese circum st ances t hc Court preferredt hat t hc m at t cr be decided by t hc arbit rat or as per clausc oft he agrecm cnt To st rcngt hcnt his cont cnt ion I earned counsel t he pct it ioncrreferred MAi GeM1l vs Mls Sri Lakshm i Kns 4 WovensS On Rashm i 2013.01.15 15: 42 True Scanned Copy Of t he Original PHHC,Chandigarh Gauhat i High Ct lurt 2007 l1 RCR ivill 851 lt is furt her cont cnded t hat in aut horit yNichlas Piram ulI i Lt d vs Zenit h JOYTI RANI 2016.03.28 16:23 I attest to the accuracy and integrity of this document 442 1 CR No3329 t I f 2008 6 1 1 0 C I C5 I Z I 08 CQ 7 Z m Drus and Allied Aencies Pvt lt d AI R 2007 NOC 1897 GAUJ hcld t hat t he quest ionas t o whct her arbit rat ion agrecm entis at t ract ed t o t he fact s of t he givcncase or not cannot be decidcd by t he Civil Court but byt he arbit rat or him sclf 1 have considcred t hc said subm issions and havc t hrought he rccords of t hc case I n aut hont yJlw11 I er casupral relied upon by t he learncd cou nsel t hc pet it ionerI n order t o at t ract t he valid arbit rat ion agrccm cntt he four condit ions m ent ioncd above should be fulfllled The I earned counsel for t he pet it ioncrhas subm it t cd t hat t he said four condit ions are fulfilled in t he presentcase but t hat argum cntis devoid ofany legalforce All t he four condit ions m ent ioned abovc arc com plct ein t he Presentcasc 7I he agrccm cnt lS I n writ ing The part icshave agrcedt o refer any disput cprcscnt or fut urc bct wecn t hcm t o t hc dccision of t he privat eTribunal The privat cTribunal was em powercdt o adj udicat e disput einan im part ialm anner givingopport unit yt o t he part icst o put t heir casc bcfore it Thc part ieshavc agreedt o abide by t he decision of t he privat eTribunal So t he aut horit yJordi Chonders case does not help t hc casc of t hc pet it ionerin any m anncr Mere alleging t hat fraud has been com m it t ed does not oust t hc j urisdict ion of t he arbit rat or t o adj udicat et he disput e lt is nol disput edt hat chequehas been issued by t he plaint iff So t hc fact t hat fraud is t here cannot be accept edOll Rashm i 2013.01.15 15: 42 True Scanned Copy Of t he Original PHHC,Chandigarh t he face of I n t hcsc eircum st anccs aut horit v JOYTI RANI 2016.03.28 16:23 A5 I attest to the accuracy and integrity of this document Radhakrirhnm 7s ccsupral relied upon bv t hc I carned counscl for 443 CR No3329 of 2008 7 1 1 1 r 0 C Z C5 I Z C I a5 7 Z t l t hepct it ioncralso does not hclp t he casc of t he pet it ioner So far as t he rcliance of pct it ioncron aut horit y Prat hisht hunam s case supralis concerncd t hat aut horit yalso docs not advance t he case of t hc can not be said t hat t here are vagucclause of arbit rat ion The dct ailed procedureis t hcre m ent ionedin Annexure R5 m ent ioned t hat proccdure lI S and R ln clause 21 it has bcen by cxist ed provisionsshail prevailSoit I S a com plct eprocedurchow arbit rat or is appoint edand who shall be arbilrat or in Chapt erXl Thc said proccdurchas bcen clearly I aid t he ByllI wsand Chapt er 50f Vut urcs 8L Opt ions Trading Rcgulat ion of Nat ional St ock Exchangeof I ndia Lim it ed So it cannot be said t hat arbit rat or can not be appoint edor t hat consent has nrI t been t I bt liined These m at t ers arc regulat cdby t he above said by I aws The Honble Apex Court in aut horit yMLs Agri Gold Exim s Lt des casesupral has heid t hat whcre t hcre is a valid arbit rat ion clause t hat casc disput esh0uld be rcferred t o t he arbit rat ora lt has been furt her laid down in t he said ruling t hat a part y filingcivil suit when cropped u t he Cou rt right ly referrcd t hc disput e t o t he Arbit rat ore Sot helearned t rial Court has right ly held t hat t here is a valid arbit rat ion clause belwcen t hc parfiesand as such t he suit has been right ly dism issed wit h t he obscrvat ions t hat t he part icscan get t heir disput esset t I cd bcfore t he Arbit rat or Consequcnt I y t here is no m erit i n Rashm i 2013.01.15 15: 42 True Scanned Copy Of t he Original PHHC,Chandigarh pet it ionsand t he sam e st and dism issed bot h t he revision JOYTI RANI 2016.03.28 16:23 I attest to the accuracy and integrity of this document 444 CR No329 of 2008 l 8 n1 e5 0 4 n R A copy of t his j udgm cntbc scnt t o t hc t rial Court for st rict JDGE com pliance April 22 2010 SV 1 1 1 0 0 I C5 I Z 2 0 I a5 m 2 Z m Rashm i 2013.01.15 15: 42 True Scanned Copy Of t he Original PHHC,Chandigarh JOYTI RANI 2016.03.28 16:23 I attest to the accuracy and integrity of this document