Case Law Details
National Collateral Management Services Limited Vs Maa Diwri Rice Mill Pvt. Ltd (Jharkhand High Court)
The question which has been raised by the learned counsel for the respondent that the similar issue is pending adjudication before the Council constituted under the MSME Act, 2006, therefore, the instant application is not maintainable.
This Court, is not in agreement with such submission reason being that even accepting that the similar matters are pending before the Council, the same cannot be construed to be a ground for holding this application not maintainable. The reason for coming to such conclusion is that under Section 11(6) of the Arbitration and Conciliation Act, 1996 is supposed to see the arbitration clause contained in the agreement/contract enriched in between the parties. The matter is otherwise different if there is no arbitration clause in the agreement then what has been submitted by the learned counsel for the respondent can be accepted, but, that is not the fact herein since there is specific arbitration clause as under Clause 19 of the Milling Agreement dated 31.12.2015 as quoted and referred above.
This Court, is of the view that merely because one of the parties, i.e., the respondent, has approached before the Council, the instant application cannot be held to be not maintainable rather the instant application is well maintainable since there is arbitration clause for resolution of the dispute by appointing arbitrator.
It is also admitted that request for appointment of arbitrator has been made but even after lapse of the statutory period of 30 days, no arbitrator has been appointed, therefore, this Court is of the view that it is a fit case where the power conferred to this Court under Section 11(6) of the Arbitration and Conciliation Act, 1996 is required to be exercised for appointment of Arbitrator, considering Clause 19 of the contract.
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