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2010 (5) TMI 660 - SC - Indian LawsPetition seeking reference of the disputes to an independent and impartial sole Arbitrator - Respondent contested that as per `General Terms and Conditions of the Purchase Order (Foreign) Clause 10 arbitration in case of dispute arising from the interpretation or from any matter relating to the rights and obligations of the parties calls to the appointment of the `Managing Director or his nominee' of the respondent as the arbitrator - Held that:- As respondent admitted their liability towards the Purchase Orders, refuse to settle the amounts due only on the ground as prohibited from making any payments to the petitioner by the Ministry of Defence, Government of India - the petitioner genuinely apprehends that it may not get any justice in the hands of the Managing Director, since he cannot go against the directions issued by the Ministry of Defence, Government of India and, therefore, it would be appropriate to appoint independent sole arbitrator - the Managing Director may not be in a position to independently decide the dispute between the parties as the respondent in the reply to the notice accepted liablity to pay the amount but is not in a position to settle the dues only because of the directions issued by Ministry of Defence, Government of India - it would be in the interest of both parties and to do complete justice, an arbitrator other than the Managing Director of the Respondent requires to be appointed to settle the dispute - in favour of petitioner
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