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2026 DAILYLAW 9494 (HP)

DIVISIONAL MANAGER HP STATE FOREST DEVELOPMENT CORPORATION LTD v. MOHAMMAD YAQUB

ARB.C/151/2024 · 2026-05-15

Gurmeet Singh Sandhawalia

body2026

Judgment text

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( 2026:HHC:17410 ) IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA Arb. Case No.151 of 2024 Date of Decision:- 15.05.2026 Divisional Manager, HPSFDC Ltd. ....Petitioner Versus Mohammad Yaqub ....Respondent Coram The Hon’ble Mr. Justice G.S. Sandhawalia, Chief Justice Whether approved for reporting?1 For the Petitioner : Ms. Kiran Dhiman, Advocate. For the Respondent : Mr. Narender Sharma, Advocate. G.S. Sandhawalia, Chief Justice (Oral). The present petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of an Arbitrator. 2. It is set out in the present petition that on an earlier occasion an Arbitrator had been appointed by invoking Clause 27 of the agreement dated 12.10.2007 and the Award was passed on 15.06.2019. However, the same could not be executed, since the Arbitrator as such was the Managing Director of the petitioner-Corporation and therefore, the Award was held to be non-est, in view of the law laid down by the Apex Court in 1 Whether reporters of Local Papers may be allowed to see the judgment? 2 Perkins Eastman Architect DPC and Anr. v. HSCC (India) Ltd., AIR 2020 SC 59 by the District Judge, Chamba Division, Chamba, Himachal Pradesh on 23.11.2022 (Annexure P-3). In such circumstances, the present petition has been filed. 3. The same has been contested by filing the reply, whereby it has been submitted that the requisite notice has not been served upon the respondent under Section 21 before moving this Court for appointment of the Arbitrator. 4. This Court is of the considered opinion that the said objection as such is without any basis in as much as the arbitration proceedings had already been initiated on an earlier occasion and the arbitrator had passed the Award and therefore, it is only on account of the fact that enforceable rights having been decided by the Managing Director and he was himself interested in the said proceedings being an official, thus it has been held not to be executable. In such circumstances, this Court is of the considered opinion that an independent Arbitrator has to be appointed. 5. Resultantly, the application is allowed and Mr. Arjun Lal, Advocate present in the Court is appointed as an Arbitrator (Mobile No.9418842121) to adjudicate the dispute between the parties. After his disclosure in writing is obtained in 3 terms of Section 11(8) of the Act and only after receipt thereof, his appointment, as an Arbitrator, shall come into force. 6. On his giving consent to arbitrate the dispute between the parties as an Arbitrator, Mr. Arjun Lal, Advocate shall enter into reference, and shall pass an award in accordance with law. 7. Copy of this order be furnished to the learned counsel for the parties and also be furnished to the learned Arbitrator. The learned Arbitrator so appointed shall be entitled to fee as per stipulation contained in 4th Schedule appended to the Arbitration and Conciliation Act, 1996. 8. Accordingly, the application is disposed of alongwith pending miscellaneous application(s), if any. (G.S. Sandhawalia) 15th May, 2026 Chief Justice (Munish Thakur)