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2005 (11) TMI 439

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..... e shall be resolved. In view of the specific arbitration clause conferring power on the Chamber of Commerce and Trade of the Russian Federation, it is that authority which alone will arbitrate the matter and the finding of that arbitral tribunal shall be final and obligatory for both the parties. This Court has no jurisdiction and the Chamber of Commerce and Trade of Russian Federation alone has jurisdiction to act as an arbitrator and resolve the dispute. Hence this application is rejected. - Arbitration Petition 3 of 2005 - - - Dated:- 16-11-2005 - A.K. Mathur, J. JUDGMENT A.K. MATHUR, J. This arbitration petition was filed before this Court under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of the Arbitrator. Hon ble the Chief Justice of India has designated me to nominate the Arbitrator for disposal of dispute. Notice of this petition was served on the parties and they were heard. The petitioner is a company incorporated under the relevant laws of the Republic of Singapore having its registered office at 1101, Continental Tower, Tamasek Avenue, Singapore and represented in India by Austrian Trade Commission, 80, Jor Bagh, New De .....

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..... escribed as the "Agent". Under the said agreement, Principal authorized the Agent i.e. petitioner to take the functions for organizing and conclusion of contracts between the Principal and the Border Security Force of the Ministry of Home Affairs, Government of India. Originally, the agency was for securing order for four helicopters which was subsequently enhanced to six helicopters. As per the agency agreement, the Agent-petitioner was given an obligation to facilitate signing of the contract between the Russian Technologies, the Principal and the Border Security Force of the Ministry of Home Affairs, Government of India, the customer. The petitioner was to render assistance to Russian Technologies in making negotiations with the Border Security Force of the Ministry of Home Affairs, Government of India to facilitate solving of any problems and other concerning preparations and conclusions of the contract and to render assistance to Russian Technologies in making negotiations with the Border Security Force of the Ministry of Home Affairs, Government of India on the specifications of supply of armaments and other goods for the helicopters. M/s Russian Technologies, respondent .....

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..... ner has also referred to arbitration clause in Article 6 of Agency Agreement dated 14.4.2000 which reads as under: "Article 6 Solving of Disputes and Differences 6.1. If any disputes and/or differences between the PRINCIPAL and the AGENT concerning the present agreement a rise, both PARTIES will try to solve it by negotiations. 6.2 If differences and/or disputes could not be solved by both PARTIES through negotiations, they will be submitted to Arbitration Court under the Chamber of Commerce and Trade of the Russian Federation. The decision of the Arbitration Court will be final and obligatory for both PARTIES." Therefore in this background petitioner filed this petition under Section 11(6) of the Arbitration Act, 1996 and sought prayer for appointment of arbitrator in India under the Indian Arbitration Act as according to the petitioner, it apprehends that it is not likely to get justice in Russia. A notice was also given but without any result, hence the petitioner approached this Court. Before this, petitioner filed an application under Section 9 of the Arbitration and Conciliation Act, 1996 before the Delhi High Court and the Delhi High Court passed interim order .....

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..... in Civil Appeal No. 4168 of 2003 (M/s S.B.P. Co. vs M/s Patel Engineering Ltd. Anr.) and the earlier decision rendered in the case of Konkan Railway Corporation Ltd. And another Vs Rani Construction Pvt. Ltd. [(2002) 2 SCC 388] has been reversed and now it has been held that the order passed by the Judge on designation by the Hon ble Chief Justice, the order shall be judicial order and not administrative order as was held in Konkan Railway case (supra). Therefore now legal position has been crystallized that the order passed by the Judge on nomination of the Hon ble Chief Justice of India under Section 11 shall be judicial order not amenable to any appeal. The legal position has been summarized as under in above decision M/s S.B.P. Co.(Supra) :- "46. We, therefore, sum up our conclusions as follows: i) The power exercised by the Chief Justice of the High Court or the Chief Justice of India under Section 11(6) of the Act is not an administrative power. It is a judicial power. ii) The power under Section 11(6) of the Act, in its entirety, could be delegated by the Chief Justice of the High Court only to another judge of that court and by the Chief Justice o .....

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..... dopted in that decision, we clarify that appointments of arbitrators or arbitral tribunals thus far made, are to be treated as valid, all objections being left to be decided under Section 16 of the Act. As and from this date, the position as adopted in this judgment will govern even pending applications under Section 11(6) of the Act. xi) Where District Judges had been designated by the Chief Justice of the High Court under Section 11(6) of the Act, the appointment orders thus far made by them will be treated as valid; but applications if any pending before them as on this date will stand transferred, to be dealt with by the Chief Justice of the concerned High Court or a Judge of that court designated by the Chief Justice. xii) The decision in Konkan Railway Corpn. Ltd. Anr. Vs. Rani Construction Pvt. Ltd. [ (2002) 8 SCC 388] is overruled." In the present case, as per the Agency Agreement dated 14.4.2000, Clause 6.2 categorically states that if any dispute arises between the parties then the same shall be submitted to Arbitration Court under the Chamber of Commerce and Trade of the Russian Federation. Therefore there is a specific clause mentioned in the Agency Agreement as .....

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