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2025 DAILYLAW 16070 (RAJ)

M/S FARUKHI GLASS INDUSTRIES v. RAJASTHAN STATE GANGANAGAR SUGAR MILLS LIMITED

ARBAP/59/2024 · 2025-05-15

Anoop Kumar Dhand

body2025

Judgment text

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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR S.B. Arbitration Application No.59/2024 M/s Farukhi Glass Industries, Having Its Office At Village Dholpura, Opp. Suhag Kanch Udyog, Agra Road, Firozabad- 283203, India Through Its Partner Shri Samar Mittal, Mob- 7351515000 Email-Rajiv@fmgroupfzd.com. ----Petitioner Versus Rajasthan State Ganganagar Sugar Mills Limited, Through Dy. General Manager (Purchase) Having Its Office At 3Rd Floor, Coerra Building, Jhalana Institutional Area, Jaipur-302004, (Email-Dgmpurchase.rsgsm@rajasthan.gov. In). ----Respondent For Petitioner(s) : Mr. Dinesh Kumar Mishra For Respondent(s) : Ms. Minakshi Jain, GC JUSTICE ANOOP KUMAR DHAND Order 15/05/2025 1. By way of filing this arbitration application under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act of 1996”), a prayer has been made for appointment of arbitrator to adjudicate the dispute between the parties arising out of the Letter of Acceptance (LOA) dated 12.06.2023. The Rajasthan State Ganganagar Sugar Mill Limited General Terms & Conditions of Bid of Contract contains arbitration Clause 18, which reads as under:- “In case of any dispute arising out of any matter related to the bid/contract/agreement, the matter will be referred to sole arbitrator appointed from RSGSM empanelled arbitrator from below lost appointment of an arbitrator shall be done mutually agreed by both the parties:- (2 of 4) [ARBAP-59/2024] xxxxxxx The place of arbitration shall be at Jaipur. The fees and other expenses of the arbitrator shall be borne by both parties equally.” 2. The respondent issued a Notice Inviting Tender (NIT) for awarding contract of Glass Nips for bottles of country liquor. The contract was awarded to the petitioner vide order dated 25.04.2023 and estimated value of the tender was approximately Rs.55.83 Crores and, thereafter, the rights were negotiated between the parties and the petitioner was called upon to submit a bank guarantee and, thereafter, a letter of acceptance was issued, which resulted in a contract. Subsequently, a dispute arose between the parties when LOI of the petitioner was cancelled. 3. The petitioner has approached this Court seeking appointment of the arbitrator to settle the dispute between the parties. 4. Learned counsel for the respondents opposed the prayer but he is not in a position to controvert the submissions made by the counsel for the petitioner with regard to the arbitral clause mentioned in the terms and conditions of agreement. Looking to the fact that dispute has arisen between the parties and as per Clause 18, the matter is required to be adjudicated by referring the dispute to the sole arbitrator. 5. In view of the above, this Court deems it just and proper to appoint Justice Ashok Kumar Gaur (Retd.) Resident of 30, Tagore Nagar, Opp. Regale Restaurant, Ajmer Road, Jaipur (Mob. No.9414071848) as Sole Arbitrator to adjudicate/resolve the dispute between the parties. (3 of 4) [ARBAP-59/2024] 6. The appointment of the Sole Arbitrator is subject of declaration being made under Section 12 of the Arbitration and Conciliation Act, 1996 (for short 'the Act of 1996') with respect to the independence and impartiality and ability to devote sufficient time to complete the arbitration proceedings within the prescribed period. 7. The arbitration fee of the Sole Arbitrator shall be payable in accordance with the provisions contained in the Manual of Procedure of Alternative Dispute Resolution, 2009 as amended by the Manual of Procedure for Alternative Dispute Resolution (Amendment), 2017 vide notification dated 23.03.2017 read with 4th schedule appended to the Act of 1996 or as determined by the Arbitrator with consensus of parties. 8. The Registry is directed to intimate the Arbitrator-Justice Ashok Kumar Gaur (Retd.) Resident of 30, Tagore Nagar, Opp. Regale Restaurant, Ajmer Road, Jaipur (Mob. No.9414071848) for his approval and declaration in terms of Section 11(8) read with Section 12(1) of the Act of 1996. 9. All issues raised by the parties before the Arbitrator shall be considered in accordance with law. 10. Since as per Section 29A of the Act of 1996, the arbitration proceedings are required to be concluded within the scheduled time as stipulated therein, it is expected from the parties to appear before the Arbitrator on 30.05.2025 or on any other date as informed by the Arbitrator subject to agreement by the parties. Furthermore, the parties shall provide their respective E-mail/ contact number/ mobile number and/or also of their authorized representatives/ Lawyers appearing on their behalf before the (4 of 4) [ARBAP-59/2024] Arbitration Tribunal, in order to facilitate the Arbitrator to send information/communication to the parties, whenever required. The information send by the Arbitrator, on such address/ E-mail/ cellphone of the parties or to their authorized representatives/ Lawyers, shall be treated as sufficient communication unless same is not changed. 11. Accordingly, the present arbitration application stands disposed of. (ANOOP KUMAR DHAND),J Karan/189