M/S. Indian Oil Corporation Limited. (Marketing Division), v. M/S. S.B.Q Steels Limited,

THE HON'BLE THE ACTING CHIEF JUSTICE RAMESH RANGANATHAN ARBITRATION APPLICATION No.57 of 2016 ORDER: (per the Hon'ble The Acting Chief Justice Ramesh Ranganathan) The agreement for supply of furnace oil entered into between M/s. Indian Oil Corporation Limited and M/s. S.B.Q Steels Limited dated 08.02.2010 contains an arbitration clause (clause 21). It provides for appointment of a sole arbitrator in case the parties are unable to resolve the differences within one month from the date on which the dispute had arisen. Failure of the parties to agree upon a sole arbitrator within two weeks requires each party to appoint an arbitrator of their choice and the two arbitrators so nominated to choose the third arbitrator. In view of the subsequent amendment to Section 12(5) of the Arbitration and Conciliation Act, the authority, designated under the agreement, is no longer empowered to appoint an Arbitrator. Consequently, the jurisdiction of this Court has been invoked by M/s. Indian Oil Corporation.

Both Sri Dominci Fernandes, learned counsel for the applicant and Sri Challa Gunaranjan, learned counsel for the respondent, would agree that a retired High Court Judge be appointed as the sole Arbitrator for resolving their inter-se disputes. As both the counsel are in agreement, Dr. Justice Motilal B. Naik, "Sharada Nilayam" H.No.11-13-571/A, Haripuri Colony, Saroornagar, Hyderabad - 35, a retired Judge of this Court, is appointed as the sole Arbitrator. The Learned Arbitrator shall fix his remuneration, and the incidental expenses for the arbitration

proceedings, in consultation with the parties. The Learned Arbitrator is requested to complete arbitration proceedings, and pass an award at the earliest, preferably within six months from the date of commencement of the arbitral proceedings. The Learned Arbitrator is also requested, to the extent possible, to hold sittings in the mediation centre of the High Court.

The arbitration application is disposed of accordingly. No costs. ______________________________ RAMESH RANGANATHAN, ACJ 7th JULY, 2017.

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