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2016 (7) TMI 1119 - SUPREME COURT

2016 (7) TMI 1119 - SUPREME COURT - TMI - Arbitration and Conciliation - appointment of a sole arbitrator for adjudication of disputes that have arisen between the parties in relation to ‘Buyers Agreement’ dated 18.10.2012 executed between them - Held that:- As is evident from the averments in the petition, disputes have actually arisen between the parties in relation to the agreement and in view of clause 14 such disputes could be resolved only by way of arbitration. Whether the respondent is b .....

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mpensate the petitioner and such other incidental questions can be examined only by the arbitrator. When an arbitration agreement exists between the parties, the present petition under Section 11 (5) read with Section 11 (9) of the Arbitration and Conciliation Act, 1996, shall have to be allowed with appropriate directions. - In the result, we allow this petition and appoint Mr. Justice Kailash Gambhir, a Former Judge, Delhi High Court as a Sole Arbitrator for adjudication of the disputes th .....

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on Act, 1996, the petitioner prays for the appointment of a sole arbitrator for adjudication of disputes that have arisen between the parties in relation to Buyers Agreement dated 18.10.2012 executed between them. 2. Briefly stated case of the petitioner is as under:- Petitioner is a proprietorship firm having its registered office at C-291, Suraj Mal Vihar, Delhi. The petitioner is engaged in the business of manufacturing of products relating to home furnishing and upholstery etc., exclusively .....

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ing its aforesaid products and the respondent has been buying/purchasing the products for resale/sale in the territory of France. There was a long business relationship since 2000, even prior to execution of the agreement and the petitioner was regularly supplying the products to the respondent. At the time of execution of the aforesaid agreement, it was acknowledged that the respondent owes a total amount of Euro 367814.80 as the outstanding amount. The details of the outstanding dues have been .....

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the petitioner. 3. Clause 2.2 of the Buyers Agreement imposed a restriction upon the petitioner from supplying its product to any other person/firm or company, in the territory of France. On the other hand, the respondent agreed and assured that the products ordered during each year of the term shall not fall short of the target provided in Schedule-II of the said agreement. In the event of the failure to meet such target, the agreement stipulated termination of restriction so imposed upon the .....

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the date of shipment and also for preparing samples as per the request of the respondent dated 25.05.2012 and 26.07.2012. As per Clause 4.1 of the Buyers Agreement , the respondent shall not purchase/obtain/ deal with the products or any goods that compete with them, for sale from any person, firm or company in India other than the petitioner. The respondent not only cancelled the orders, but also in violation of Clause 4.1 of the Buyers Agreement dated 18.10.2012, purchased the same products w .....

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breached the terms and conditions of the agreement. Petitioner sent legal notices dated 08.05.2013, 04.07.2013 and 06.07.2013 calling upon the respondent to pay unpaid invoices to the tune of Euro 393916.95 and also unpaid invoices to the tune of Euro 209580.63 of M/s Creative International (another partnership firm of the petitioner) alongwith interest at the rate of 24% per annum. 4. As the respondent did not make the payment of the invoices, the petitioner invoked arbitration clause agreed i .....

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enable these arbitrators nominated by the parties to further nominate the presiding arbitrator and constitute an arbitral tribunal. 5. The petitioner filed a petition before the Commercial Court in Lille to seize all the bank accounts of the respondent with the banks Caisse d Epargne, GCE Trade and HSBC bank alongwith all money, values and/or bonds held by these banks on behalf of the respondent. The court s bailiffs seized a total amount of Euro 48000 in HSBC bank on 11.10.2013 and Caisse d Ep .....

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mmercial Court of LILLE, which also came to be dismissed by its judgment dated 25.09.2014. The appellate court declared the appeal inadmissible on the issue of jurisdiction in view of the arbitration agreement and also held that there was no emergency to approach the court instead of seeking remedy under the Arbitration Agreement. According to the petitioner, the aforesaid disputes and differences have arisen in India, are covered by the terms and conditions of the Buyers Agreement and are to be .....

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sti service alongwith proof of service on respondent and proposed respondents and the service of notice is complete. 7. We have heard the learned counsel for the petitioner at some length. Despite service of notice, respondent has chosen not to appear. The material facts are not in dispute that Buyers Agreement was executed between the parties on 18.10.2012. Clause 14 of the said agreement provides for settlement of dispute in relation to the agreement by way of arbitration. Clause 14 reads as u .....

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to and settled by way of arbitration proceedings by three arbitrators, one to be nominated by each Party and the third to be appointed by the two appointed arbitrators. The arbitration proceedings shall be held in accordance with the Arbitration and Conciliation Act, 1996, or any subsequent enactment or amendment thereto (the Arbitration Act ) by a sole arbitrator appointed by the First Party. The decision of the arbitrator shall be final and binding upon the Parties. The venue of arbitration p .....

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