Application for appointment of an arbitrator dismissed in absence of arbitration agreement

TBS India Telematic & Biomedical Services Private Limited Vs Commissioner of Health and Family Welfare (Andhra Pradesh High Court)

Held that Manual issued by the Government suggesting settlement of dispute by arbitration would not amount to execution of arbitration agreement between the parties. Application u/s 11(4) & 11(6) dismissed as no arbitration agreement exists between the parties.

Facts- After dispute between the parties, the appellant filed a writ petition against the respondent. The respondent, thereafter, issued a notice of termination of the agreement. Being aggrieved by the action of the respondent, the petitioner filed another writ petition against the notice of the respondent.

It is in its counter-affidavit filed in the above writ petition that the respondent contended that since the agreement between the parties does not have any provision for its termination, recourse can be taken to the guidelines issued by the Government of India, i.e., Manual for Procurement of Goods, 2017 (the Manual).

Thereafter, the petitioner issued a notice to the respondent to amicably settle the dispute in terms of Clause 9.9 of the Manual. The respondent again replied with a show cause notice as to why the agreement should not be terminated. Consequently, the petitioner served the respondent with the notice of arbitration in terms of Clause 9.9 of the Manual.

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