Department Of Information Technology Chandigarh Administration Union Territory Of Chandigarh v. Axis Bank

ARB-375-2024 -1IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH (109) ARB-375-2024 Date of decision:- 03.09.2024 Department of Information Technology, Chandigarh Administration ..Petitioner

Versus

Axis Bank ..Respondent CORAM: HON'BLE MR. JUSTICE SUVIR SEHGAL Present:- Mr. M.K.Dogra, Advocate, Senior Standing Counsel, with Mr. Deepak Malhotra, Advocate, Standing Counsel, Union Territory, Chandigarh, for the petitioner. SUVIR SEHGAL, J. (Oral) 1.

Instant petition has been filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (for short "the Act") for appointment of an Arbitrator to resolve the disputes between the parties. 2.

Counsel for the petitioner submits that by virtue of agreement dated 01.01.2018, Annexure P-1, a contract was entered into between the parties, whereunder respondent agreed to provide various services at the Sampark Centre, pertaining to collection of bills, taxes, fee, etc. Counsel submits that some disputes arose between the parties and a show cause notice dated 02.02.2023, Annexure P-3, was served upon the respondent-Bank, to calling upon it to explain as to why it should not be held responsible for non-collection and late collection of cash and as to why penalty of Rs.21,17,50,000/-, be not imposed upon it. By response dated 03.04.2023, Annexure P-4, respondent disputed its liability. Counsel submits that notice dated 01.02.2024, Annexure P-8, was served upon the respondent, invoking the arbitration clause 13 of the contract, Annexure P-1. By their reply dated 16.02.2024, Annexure P-9, respondent requested that a Tribunal comprising three arbitrators be PARDEEP NAUTIYAL 2024.09.03 18:06 I attest to the accuracy and authenticity of this order/judgment.

constituted.

ARB-375-2024 -23.

Issue notice to the respondent.

4.

Mr. Pradyuman Sewar, Advocate, has put in appearance through Video Conferencing with Ms. Priyanka Malik, Advocate, on behalf of the respondent, and has filed Power of Attorney, which is taken on record. He does not have any objection if a sole Arbitrator is appointed. 5.

Accordingly, petition is allowed. Ms. Justice Nirmaljit Kaur, a former Judge of this Court, resident of # 188, Sector 11-A, Chandigarh, Mobile No. 9610478000, is requested to act as an Arbitrator to adjudicate the dispute between the parties, subject to compliance with statutory provisions. 6.

Parties are directed to appear before the learned Arbitrator on date, time, and place to be fixed by her at her convenience. 7.

Liberty is granted to the parties to raise all claims, counter claims, defences, pleas, etc. before the Arbitrator.

8.

Needless to mention that all the questions arising between the parties in this matter shall remain open for determination in the arbitral proceedings and any observation made hereinabove will not be binding on the learned Arbitrator.

9.

A request letter along with a copy of the order be sent to Ms. Justice (Retd.) Nirmaljit Kaur.

(SUVIR SEHGAL) JUDGE 03.09.2024 Pardeep Whether Speaking/Reasoned Yes Whether Reportable Yes/No PARDEEP NAUTIYAL 2024.09.03 18:06 I attest to the accuracy and authenticity of this order/judgment.