It is not in dispute that in the agreement between the parties, there is an arbitration clause in following terms :
"The jurisdiction of courts for all disputes arising out of this or under this agreement will be at Ahmedabad only. Any disputes arising out of the transaction between the agent and the principal shall be referred to the sole arbitrator under Arbitration and Conciliation Act, 1996."
It is the case of the petitioner that the respondent has to pay sizable amount of money to the petitioner for which purpose though several reminders were sent, the respondent did not settle the accounts. The petitioner, therefore, in order to activate the arbitration clause issued a notice dated 23.1.12 suggesting that as on 2.12.11, there is outstanding dues of Rs.1,75,86,412/- payable by the respondent. In the said notice, it was further stated that despite repeated reminders and personal visits by the Executive of the petitioner Company, the respondent failed to settle the accounts. The petitioner, therefore, called upon the respondent to agree to the appointment of Hon'ble Shri Justice C.K.Buch (Retd.) as Sole Arbitrator to resolve such disputes. Admittedly, to this notice, no reply was given by the respondents.
In response to the notice issued, however, the respondent has filed an affidavit dated 25th April 2012 mainly contending that the respondent was always ready and wiling to settle the account. Counsel for the respondents submitted that in fact the respondent has to receive amounts from the petitioner.
I need not go into the validity of the rival claims. Suffice it to note that disputes have arisen between the parties and that there is an arbitration agreement in the contract executed by the petitioner and the respondent. In that view of the matter, accepting the prayer of the petitioner, Hon'ble Shri Justice C.K.Buch (Retd.) is requested to act as Sole Arbitrator to resolve the dispute arising between the parties out of the agreement dated 24th October 2007. This petition is disposed of accordingly.
(Akil Kureshi J.) (vjn) Top