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2012 (10) TMI 270 - SUPREME COURTApplication for appointment of the Arbitrator - Memorandum of Understanding for the marketing of the cars of the petitioner – alleged that respondent did not have in place the necessary resources to build the brand of the petitioner – termination of contract - plea of the respondent that the MOU relate to a test and trial period which came to an end on 31st December, 2007, after which the parties decided to enter into a distribution agreement which was sent by the petitioner to the respondent on 15th November, 2007, i.e., 15 days prior to the expiry of the MOU. Therefore, the arbitration clause relied upon by the petitioner does not cover any disputes/claims that relate to any period beyond 31st December, 2007 – Held that:- Section 16(1)(a) of the Arbitration and Conciliation Act, 1996 provides that an arbitration clause which forms part of the contract shall be treated as an agreement independent of the other terms of the contract - even on the termination of the agreement/contract, the arbitration agreement would still survive - disputes raised by the petitioner needs to be referred to arbitration - Since the parties have failed to appoint an arbitrator under the agreed procedure, it is necessary for this Court to appoint the Arbitrator
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