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2014 (1) TMI 1014 - HC - Companies LawDemand of appointment of arbitrator - Demand issued after initiation of proceedings - Whether the petitioner made a demand for appointment of an arbitrator and if so, by which communication/ notice - Held that:- A careful perusal of the clause would show that once disputes or differences have arisen between the parties then, the matter is required to be referred for arbitration by the Chairman and Managing Director of the respondent or any other person appointed by him. The petitioner, undoubtedly, in the notice dated 04.02.2013, raised disputes to which no response was admittedly issued by the respondent - if arbitration had been demanded vide notice dated 04.02.2013, ordinarily there would be no need for issuance of second notice dated 07.05.2013, though such a conduct by itself cannot lead to any definitive conclusion either, especially in the circumstances that there was a gap of at least three (3) months between the two notices - Therefore, the appointment by the respondent, of a sole arbitrator vide communication dated 07.06.2013, would be of no relevance as, the petitioner had moved this court much after the expiry of the thirty (30) days from the date of receipt of the first notice dated 04.02.2013 by the respondent. What made the respondent’s case worse was the fact that the appointment of an arbitrator was sought to be made post the date of institution of the present petition. The petitioner is thus entitled to relief not only under Section 11(4) and 11(5) but also under Section 11(6) of the Act - Decided in favour of Petitioner.
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