Ekta Shakti Foundation vs The State Of Assam And Anr on 6 April, 2026

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    Gauhati High Court

    Ekta Shakti Foundation vs The State Of Assam And Anr on 6 April, 2026

    Author: Soumitra Saikia

    Bench: Soumitra Saikia

                                                                 Page No.# 1/23
    
    GAHC010133112024
    
    
    
    
                                                           undefined
    
                         THE GAUHATI HIGH COURT
      (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
    
                             Case No. : Arb.P./27/2024
    
             EKTA SHAKTI FOUNDATION,
             REPRESENTED THROUGH AUTHORIZED REPRESENTATIVE/ PROJECT
             DIRECTOR MR. ANIL KUMAR AGGARWAL, HAVING ITS OFFICE A-20,
             BASEMENT AND UPPER GROUND FLOOR, NEW KRISHNA PARK, VIKAS
             PURI, NEW DELHI-110018.
    
    
    
             VERSUS
    
             THE STATE OF ASSAM AND ANR
             THROUGH THE COMMISSIONER AND SECRETARY TO THE GOVERNMENT
             OF ASSAM, EDUCATION (ELEMENTARY DEPARTMENT), DISPUR,
             GUWAHATI.
    
             2:THE OFFICE OF THE STATE NODAL OFFICER
              REPRESENTED THROUGH THE MISSION DIRECTOR
              SAMAGRA SHIKSHA AND STATE NODAL OFFICER
              MID-DAY-MEAL SCHEME
              SSA CAMPUS
              KAHILIPARA
              GUWAHATI-781019
             ASSA
                                                                                       Page No.# 2/23
    
                                             -B E F O R E -
                            HON'BLE MR. JUSTICE SOUMITRA SAIKIA
    
    
         Advocate for the petitioner     :Mr. S Sancheti, Advocate
    
    
         Advocate for the respondents   :Mr. P Nayak, Addl. Advocate General, Assam
    
    
    
         Date of Order:                  : 06.04.2026
    
    
                                                   ORDER
    

    The petitioner is an NGO registered under the Societies Registration

    Act. The respondent No. 2 is a State Nodal Office, Mid-day Meals scheme,

    SPONSORED

    Assam. The scheme is floated by the Government for supply of mid-day

    meals to the children of various primary and upper primary classes

    studying in Government and Government-aided schools. The respondent

    No. 2 is represented by the Mission Director, who is a Government Official

    of the State of Assam under the respondent No. 1, namely the

    Department of Elementary Education, Government of Assam.

    2. In response to the Expression of Interest (EoI) issued by the

    respondent No. 2 inviting applications from various NGOs for supplying

    freshly cooked mid-day meals to Government and Government-aided

    schools in Assam, the petitioner being eligible and having experience in
    Page No.# 3/23

    the said category of work applied under the Scheme. By communication

    dated 01.09.2018, the petitioner was granted approval for establishing a

    Central Kitchen and was allotted work in the districts of Bongaigaon,

    Dhubri and Morigaon, as per norms, to provide hygienic, healthy and

    nutritious hot-cooked food to children under the Mid-Day Meal Scheme in

    accordance with the existing guidelines of the Government of India.

    Thereafter, a contract agreement was executed between the petitioner

    and the respondent No. 2 by way of an MoU/Agreement dated

    26.10.2018 for the said purpose. Subsequent communications were

    exchanged between the respondents and the petitioner regarding the

    supply requirements, including the number of schools, number of

    children, beneficiaries, and the scheduled date of commencement of

    supply from 01.01.2019 to 01.04.2019. There was a request made by the

    petitioner for extension of time for commencement of the hot-cooked

    Mid-Day Meal supply. Meanwhile, in pursuance of the allotted work, the

    petitioner incurred an expenditure of Rs. 3,87,78,435/- towards purchase

    of land, construction of buildings, rental charges, and investment in fixed

    assets. The petitioner further claims to have availed a cash credit facility

    from a bank, on which an amount of Rs. 36,63,063/- has been paid as

    interest up to 31.03.2023.

    Page No.# 4/23

    3. While the petitioner’s request for extension was not replied to, by

    communication dated 10.11.2019, the respondents instructed the

    petitioner to stop further supply of hot cooked mid-day meals until further

    orders. Although no reasons were stated to have been cited in the said

    communication, petitioner however continued to maintain the

    infrastructure/kitchens which were also inspected by the officials of the

    SSA from the district of Bongaigaon and a proper inspection report to that

    effect has also been issued.

    4. It is the case of the petitioner that under Clause 54 of the

    MoU/Agreement dated 26.10.2018, a notice period of 30 days was

    required before terminating the contract. Accordingly, the petitioner

    submitted a representation dated 28.12.2020 before the authorities,

    requesting reconsideration of the arbitrary termination of the contract.

    However, no response was received from the respondents. The petitioner

    being aggrieved approached this Court by filing W.P(C) No. 1620/2022

    which came to be dismissed by the order dated 26.06.2023. However,

    petitioner was granted liberty to invoke arbitration as per Clause 56 of the

    MoU/Agreement dated 26.10.2018.

    Page No.# 5/23

    5. According to the petitioner, notice was sent under section 11(6) for

    appointment of an arbitrator through its advocate on 27.07.2023 but no

    response was received from the respondents to the said notice. Being

    aggrieved, the present application under section 11(6) has been filed.

    6. The learned counsel for the petitioner submits that since the

    respondents have failed to appoint an Arbitrator as per the demand

    raised by the notice, the petitioner has approached this Court. It is

    further submitted that in terms of the Clause 56 of the MoU/Agreement,

    it is provided that the demand for arbitration shall be raised on which the

    matter will be referred to the State Government and who will thereafter

    appoint a sole Arbitrator. This provision in any event of the matter is

    contrary to the law laid down by the Apex Court in a series of Judgments

    rendered in Perkins Eastman Architects DPC & Anr. Vs. HSCC (India) Ltd,

    reported in (2019) SCCOnline SC 1517 and finally, the issue came to be

    settled by the Apex Court in a Constitution Bench Judgment rendered in

    Re: Interplay between Arbitration Agreements and Arbitration and

    Consolidation Act 1966 and the Indian Stump Act 1899 on the scope of

    the powers of a referral Court under Section 11 of the Act of 1996.

    Page No.# 6/23

    7. The learned counsel for the petitioner submits that since the

    respondents have failed to act upon the notice issued by the petitioner

    calling upon them to appoint an Arbitrator and in any event of the matter,

    since the arbitration agreement contains a Clause that the matter should

    be referred to the State Government who in turn will appoint an officer of

    the Government being contrary to the amendments brought into the Act

    of 1996 under Section 12(5), more particularly when the petitioner has

    not expressed its consent towards appointment of such an officer, this

    application should be allowed and a sole Arbitrator be appointed by the

    Court to decide the dispute(s) and the differences arising by and between

    the parties relating to the agreement dated 26.10.2018.

    8. The learned counsel for the petitioner has referred to the

    Judgments of the Apex Court rendered in Goqii Technologies Pvt Ltd. Vs.

    Sokrati Technologies Pvt. Ltd., reported in (2025) 2 SCC 192 to submit

    that the law laid down by the Apex Court with regard to the powers on

    the referral Court under section 11(6) of the Act of 1996 is that the

    referral Court is only to look into the existence of a valid arbitration

    agreement. The arbitrability of the disputes are to be left to be decided

    by the Arbitral Tribunal. In so far as this application is concerned, there is
    Page No.# 7/23

    no dispute that there is a valid arbitration clause being Clause No. 56 of

    the said MoU/Agreement. The respondents have also not disputed the

    existence of a valid arbitration clause. Therefore, the prayer of the

    petitioner should be allowed and direction be issued by the Court for

    appointment of a sole Arbitrator who will decide the difference and

    disputes arising out of the agreement dated 26.10.2019 executed by and

    between the parties.

    9. Per contra, Mr. P. Nayak, learned Addl. Advocate General, Assam

    representing the respondents submits that the petitioner had earlier

    approached this Court which came to be dismissed. Referring to the said

    order dated 26.06.2023 passed in W.P(C) No. 1620/2022, he submits that

    the Co-ordinate Bench while dismissing the writ petition had returned a

    finding that the normal tenure of the MoU having been found to have

    expired on 31.12.2021 which is after normal tenure of three years of the

    MoU. The contract was found to be determinable in nature and it was

    held that the petitioner is not found to be entitled to any further specific

    performance of the contract after a lapse and/or expiry of the contract

    period covered by the said MoU/Agreement. The learned Single Bench

    held that at best the petitioner would be perhaps entitled to approach the
    Page No.# 8/23

    Civil Court for seeking damages and/or compensation if so advised and

    accordingly, it was held that the writ petition failed and the same is

    dismissed. However, having regard to clause 56 of the MoU/Agreement,

    the Court was inclined to provide that the dismissal of the writ petition

    shall not be a bar for the petitioner to invoke the arbitration clause. It

    was further provided that the period spent before the Writ court from

    25.02.2022 till the date of passing of the order, i.e order dated

    26.06.2023, the petitioner would be entitled to claim extension of time for

    proceeding bona fide in Court without jurisdiction. The learned Addl.

    Advocate General therefore submits that the finding recorded in the Writ

    petition clearly revealed that the petitioner is not entitled to any claims

    save and except damages and compensation for which the petitioner has

    been permitted to avail of before a Civil court. As such, notwithstanding

    the liberty granted to invoke the arbitration clause, the finding of the

    Court, not having been appealed against, has attained finality to the

    effect that the petitioner is entitled only to claim compensation and

    damages, for which he may approach the Civil Court. Therefore, referring

    the petitioner to arbitration would be futile, as no relief can be granted to

    the petitioner in view of the categorical findings recorded by the Writ

    Court in the writ petition filed by the petitioner. Therefore, the present
    Page No.# 9/23

    application should be dismissed. The learned counsel for the respondents

    has referred to the Judgments of the Apex Court rendered in SBI General

    Insurance Co. Ltd. Vs. Krish Spinning, reported in 2024 SCC Online SC

    1754 to submit that where no arbitrable dispute subsists then the

    reference to arbitration must not be allowed. The Hon’ble Court in that

    Judgment was also pleaded to hold that in cases where the claims are

    found to be ex-facie time barred and deadwood, the Court can interfere

    and refuse to refer the matter for arbitration. He submits that in the

    present case also in view of the finding of the Writ Court that the

    petitioner is entitled only to damages and compensation, such claims can

    be determined by a competent Court of Civil jurisdiction. No reference to

    arbitration is called for. Under such circumstances, the application should

    be dismissed as not maintainable.

    10. The further argument of the respondents counsel is that the

    procedure prescribed in the arbitration agreement at Clause 56 has not

    been adhered to by the petitioner. In terms of the provisions of the Act of

    1996, petitioner will issue a notice under section 21 calling upon the

    respondents to appoint an Arbitrator in terms of the agreement. It is the

    submission of the counsel for the respondents that such notice was never
    Page No.# 10/23

    issued on the respondents calling upon them to appoint an Arbitrator.

    Rather, they were intimated by communication dated 21.02.2024 whereby

    the petitioner has intimated the respondents that an application under

    Section 11 of the Arbitration and Conciliation act shall be filed for

    appointment of the arbitrator as unilateral appointment of a sole

    arbitrator, is invalid in terms of the Judgment rendered in Perkins

    Eastman Architects DPC (Supra). It is submitted that in terms of the

    Provisions of Clause 56 of the agreement, the petitioner is to issue a

    notice calling upon the respondents to appoint an arbitrator. Even

    assuming, though not admitting, that the respondents are required to

    refer the matters to the State government for appointment of an

    arbitrator, that stage had not been crossed and prior to that this

    application under Section 11(6) has been filed praying for an arbitrator.

    Had the petitioner issued a notice as contemplated under Clause 56 of

    the Agreement, the matter would have been referred to the Government

    for appointment of a sole arbitrator. Only upon the matter being referred

    to an arbitrator or to the State Government, the question of appointment

    of an arbitrator by the State in terms of Clause 56 of the Agreement

    would have arisen. If thereupon the petitioners did not agree to the name

    suggested, then the stage for filing an application under section 11(6)
    Page No.# 11/23

    would have arisen. In the present case before even the respondents were

    called upon to perform their duties as contemplated under Section 11

    read with Section 21 of the Act of 1996, the petitioner is filed this

    application under Section 11(6) of the Arbitration and Conciliation Act,

    1996. Therefore, the stage for invocation of power under section 11(6) at

    this stage has not a reason in view of the failure of the petitioner to

    comply with the provisions of Clause 56 of the MoU/Agreement.

    11. The learned counsel for the parties have been heard. Pleadings

    available on record have been carefully perused. The arbitration Clause as

    provided at Clause 56 of the Agreement reads as under:

    “56. Arbitration : In the event of any dispute arising out of the contract
    between the parties here to, the same shall be referred to the sole
    arbitrator of the State Government or any officer appointed by the State
    Government on its behalf. The proceedings held by the arbitration in
    making award will be in accordance with the provisions of Indian
    Arbitration and Conciliation Act
    1996 or any statutory amendments thereof.
    The award of the arbitrator shall be final and binding on the parties.”

    12. From a perusal of the said Clause, it is clear that once disputes

    arise, the contractor would call upon the respondents to raise their claims

    before the employer and if they are not settled, call upon them to refer

    the matter to arbitration. In terms of Clause 56 once such a notice is
    Page No.# 12/23

    issued, the respondents would refer the matter to the Government and

    thereupon the Government will appoint an Arbitrator. If under Section

    12(5) of the Act of 1996 read with the Judgments of Central Organization

    for Railway Electrification Vs. ECI SPIC SMO MCML (JV), reported in 2024 SCC

    Online SC 3219 and Re: Interplay between Arbitration Agreements and

    Arbitration and Consolidation Act 1966 and the Indian Stump Act 1899 , if

    the contractor does not give its consent for appointment of the arbitrator

    from the curated panel maintained by the Government then an

    application under 11(6) can be filed. The relevant portions of these

    Judgments are extracted below.

    In Central Organization for Railway Electrification (Supra), the

    Constitution Bench of five Hon’ble Judges of the Supreme Court passed the

    judgment in three parts, the majority view of the Judgment is extracted as

    under:

    “a. The principle of equal treatment of parties applies at all stages of
    arbitration proceedings, including the stage of appointment of
    arbitrators;

    b. The Arbitration Act does not prohibit PSUs from empanelling potential
    arbitrators. However, an arbitration clause cannot mandate the other
    party to select its arbitrator from the panel curated by PSUs;

    c. A clause that allows one party to unilaterally appoint a sole arbitrator
    Page No.# 13/23

    gives rise to justifiable doubts as to the independence and impartiality of
    the arbitrator. Further, such a unilateral clause is exclusive and hinders
    equal participation of the other party in the appointment process of
    arbitrators;

    d. In the appointment of a three-member panel, mandating the other
    party to select its arbitrator from a curated panel of potential arbitrators
    is against the principle of equal treatment of parties. In this situation,
    there is no effective counterbalance because parties do not participate
    equally in the process of appointing arbitrators. The process of
    appointing arbitrators in CORE (supra) is unequal and prejudiced in
    favour of the Railways;

    e. Unilateral appointment clauses in public-private contracts are violative
    of Article 14 of the Constitution;

    f. The principle of express waiver contained under the proviso to Section
    12(5)
    also applies to situations where the parties seek to waive the
    allegation of bias against an arbitrator appointed unilaterally by one of
    the parties. After the disputes have arisen, the parties can determine
    whether there is a necessity to waive the nemo judex rule; and

    g. The law laid down in the present reference will apply prospectively to
    arbitrator appointments to be made after the date of this judgment. This
    direction applies to three-member tribunals”

    13. These provisions have been consistently referred to also in the

    subsequent Judgments rendered in SBI General Insurance Co. Ltd.

    (Supra).

    14. The question before this Court is whether, in the absence of a
    Page No.# 14/23

    specific notice under Section 21 of the Act of 1996 calling upon the

    respondents to appoint an Arbitrator and whether the referral Court can

    invoke its jurisdiction under section 11(6) of the act of 1996 pursuant to

    the amendments brought in under Section 12(5) of the Act of 1996 as

    also the Judgments of the Apex Court rendered in Central Organization for

    Railway Electrification (Supra) and Re: Interplay between Arbitration

    Agreements and Arbitration and Consolidation Act 1966 and the Indian

    Stump Act 1899 as well as SBI General Insurance Co. Ltd. (Supra), it has

    time again in the conclusion of the Apex Court that the extent of

    examination of a referral Court is to see whether a valid arbitration

    agreement exists. Ordinarily, that is the power to be exercised. In so far

    as the question of whether the disputes urged are at all arbitrable.

    Ordinarily a referral Court would not examine the issue in detailed unless

    prima facie appears to the Court that these issues are dead-wood and

    cannot be decided or not required to be decided by the Arbitral Tribunal

    in view of the accepted position on facts and/or being expressly barred

    under some statute.

    15. Coming to facts of this case, when the present petitioner had

    approached the writ Court by filing W.P(C) No. 1620/2020, the Writ
    Page No.# 15/23

    petition stood dismissed vide order dated 26.06.2023 and the Court

    returned a finding as under:

    “6. It is seen that vide Memorandum of Understanding (MoU for short)
    dated 26.10.2018, the period of engagement of the petitioner was for an
    initial period of 3 (three) years with effect from 01.01.2019. Therefore, the
    normal three year tenure of the MoU is found to have already expired on
    31.12.2021. Therefore, as the contract is found to be determinable in
    nature, the petitioner is not found to be entitled to any further specific
    performance of contract after lapse and/or expiry of the contract period
    covered by the said MoU. At best, the petitioner would perhaps be entitled
    to approach the civil court for seeking damages and/or compensation, if so
    advised.

    7. The cases cited by the learned senior counsel for the petitioners would
    also not help the petitioner in any way because on facts, the cited cases are
    distinguishable. In the case of Doiwala Sehkari Shram Samvida Samiti Ltd.
    (supra), the appellant before the Supreme Court of India was granted minor
    mineral mining lease for 10 (ten) years, but due to change in policy decision,
    the agreed lease period was sought to be curtailed and therefore, as the
    change of policy came during the currency of the lease agreement, the
    Supreme Court of India had held that the appellant therein was entitled to
    relief of continuing the lease till the expiry of lease for 10 (ten) years.

    Similarly, in the case of Beg Raj Singh (supra), the mining lease was for 1
    (one) year in accordance with the policy decision, and when renewal was
    sought for another two years, the lease was granted for only one year, when
    it should have been for three years and under such circumstances, the
    Supreme Court of India had held that the petitioner should be allowed to
    operate the mining lease for full period of lease, subject to adjustment for
    the period for which he has already operated. Therefore, the said two cases
    cited on behalf of the petitioner are not authority on the point that even if
    the contract period is lapsed, the High Court in exercise of writ jurisdiction
    under Article 226 of the Constitution of India can direct the respondents to
    continue the contract for any further period.

    8. Therefore, this writ petition fails and the same is dismissed.

    Page No.# 16/23

    9. However, before parting with the records, as the learned senior counsel
    for the petitioner had referred to clause 56 of the MoU, which contains
    arbitration clause, the Court is inclined to provide that the dismissal of this
    writ petition shall not be a bar for the petitioner to invoke arbitration clause.
    In the said regard, as the present writ petition was filed on 25.02.2022, it is
    provided that in respect of the period spent before this Court from
    25.02.2022 till the date of passing of this order, the petitioner would be
    entitled to claim extension of time of proceeding bona fide in Court without
    jurisdiction.”

    16. It is clear that the only issue left to be determined in view of the

    writ Court are the compensation and damages, if any, that may be

    required to be paid to the petitioner as the period of contract itself had

    expired on the date when the matter was examined and decided by the

    Writ Court. No appeal or review has been filed against this order and

    therefore this order has attained finality as on date. In the face of a

    judicial finding that the petitioner is entitled to claim only for

    compensation and damages, the question that would arise now is

    whether such claim can be decided by an arbitrator.

    17. It is clear from the Judgment examined above that arbitration, as

    conceived under the Act of 1996, empowers the arbitrator appointed to

    decide all disputes arising out of the contract executed between the

    parties, subject to there being a valid agreement between the parties that

    in case of disputes matters are to be referred to arbitration. Therefore, to
    Page No.# 17/23

    say that an Arbitrator, if appointed, would otherwise, be incompetent to

    decide the issue on the question of compensation and damages, is

    contrary to the law pronounced by the Apex court and this is hold in force

    as on date.

    18. Now coming to the question as to whether in the face of an

    agreement, the referral Court under Section 11(6) can invoke its

    jurisdiction on the failure of the person approaching the referral Court for

    invoking the arbitration proceedings by issuance of a notice Under section

    21 of the Act. The answer to this question, perhaps ordinarily, has to be

    answered is negative However, taking into consideration the law

    expounded by the Apex Court regarding the right of waiver of consent by

    the party for appointment of an Arbitrator or Arbitrators from the curated

    panel maintained by the employer, it was held that such appointments

    from the curated panel can also be made subject to such a valid consent

    being granted by the contractor. Before this Court, it is clear that the

    contractor is aggrieved by the termination of its Agreement/MoU dated

    26.10.2018 and non-consideration of its pleas for extension of the said

    contract. The communication dated 21.02.2024 although strictly not a

    notice under Section 21, it does appear that the intention of the
    Page No.# 18/23

    petitioner before this court while issuing the notice was to impliedly not

    give its consent in the event of any such reference to arbitration to a sole

    arbitrator that would ultimately be made by the state government. On the

    other hand, it is also seen that the respondents do not dispute the

    existence of a valid arbitration agreement nor is it disputed that the

    position in law is for appointment of an arbitrator by the Government

    from its curated panel, is possible only in the face of expressed consent

    by the contractor. From the facts narrated in the pleadings before the

    Court, it appears that the dispute between the parties have not been

    resolved and on the other hand there is a method for taking recourse to

    resolving such disputes expressly agreed upon by the parties by way of

    reference to arbitration. The only hurdle that is presented before the

    Court by the Respondents is non issuance of a notice under section 21

    and thereby the power required to be invoked by the referral Court under

    section 11(6) cannot be invoked until and unless such agreed terms are

    enforced by the parties in terms of the said agreement.

    19. In this context reference to the Judgment of the Apex Court

    rendered in Adavya Projects (P) Ltd. Vs. Vishal Structurals (P) Ltd.,

    reported in 2025 SCC Online SC 806, on the question of who can be
    Page No.# 19/23

    impleaded as a party to the arbitral proceedings. The Apex Court held

    that once a person consents to refer disputes to arbitration and enters

    into an arbitration agreement under Section 7 is bound by the same. It

    was held that the implication of being a party to the arbitration

    agreement is that such person has contractually undertaken to resolve

    any dispute referenced in the arbitration agreement through the agreed

    upon method of dispute resolution, that is, Arbitration. It is under this

    contractual obligation that a person can be impleaded as a party to

    arbitral proceedings, even if, he was not served with a Section 21 notice

    and not referred to arbitration by Court under Section 11. It was held that

    not being served with Section 21 notice and not being made a party in

    Section 11, application are not sufficient grounds to hold that a person

    cannot be made a party to arbitral proceedings. The Apex Court went on

    to hold that the purpose of Section 11, application for constitution of an

    Arbitral Tribunal is for the limited scope of examination about the

    existence of an arbitration agreement and the prima facie finding as to

    who are the parties. Upon such examination, if there is a clear intention

    of the parties to refer the dispute to arbitration, the Court under Section

    11 does not conclusively determine or rule who can be made a party to

    arbitral Tribunals. Therefore, the question of determination of whether
    Page No.# 20/23

    certain persons are parties to an arbitration agreement and consequently

    whether they can be made party to arbitration proceedings is left to be

    decided by the arbitrial tribunal.

    20. In conclusion, this Court therefore holds that there is a valid

    arbitration agreement existing between the petitioner and the

    respondents to refer the dispute, if any, for arbitration. Procedure

    prescribed is for the petitioner to issue a notice calling upon the

    respondent to appoint an Arbitrator and failing which in terms of Section

    11, the application before the Court can be taken recourse. Assuming, the

    petitioner had issued a notice under Section 21 in terms of the arbitration

    agreement, the respondent would have referred the matter to the State

    government and who in turn will appoint a sole arbitrator from its curated

    panel.

    21. As discussed about the long standing dispute between the petitioner

    and the respondents, prima facie, appears to the Court will not evince a

    voluntary consent from the petitioner for referral to arbitration before a

    sole Arbitrator appointed by the Government from the curated panel. In

    such a case, the matter ultimately would have been referred to a Court
    Page No.# 21/23

    under Section 11(6) for appointment of the Arbitrator.

    22. The other issue is in view of the orders of the Writ Court dated

    26.06.2023 passed in W.P(C) 1620/2022, the disputes found to be

    referred to arbitration by a Writ Court are in respect of compensation and

    damages. It has been held by the Courts across the country and the Apex

    Court that an arbitral Tribunal is empowered to pass any order as an

    ordinary Civil Court would be required to pass and therefore, the

    contention of the respondents that since the Writ Court has limited the

    claims of the petitioner to damages and compensation which would

    necessarily have to be determined by competent Court of Civil

    Jurisdiction, reference to arbitration is not called for, is therefore rejected.

    It is held that an arbitral Tribunal is competent under the provisions of

    the Act of 1996 to decide and answer the disputes arising by and

    between the parties relating to the questions of damages and

    compensation as may be claimed by the petitioner in terms of the

    disputes which he claims has arisen by and between the parties in terms

    of the agreement dated 26.10.2018. This Court, therefore, holds that this

    petition is maintainable. In the peculiar facts and circumstances of the

    case for non-issuance of a notice under Section 21 cannot be considered
    Page No.# 22/23

    to be a ground for invocation of the powers under Section 11(6) by

    referral Court when there is no dispute with regard to the existence of a

    valid arbitration Tribunal. Therefore, under the powers bestowed on this

    court under Section 11(6) read with the Notification No. 29 dated

    21.05.2024 issued by the Gauhati High Court , this Court considers it

    appropriate to appoint Mr. Justice Achintya Malla Bujor Barua, Former

    Judge, Gauhati High Court as a sole arbitrator to decide on the disputes

    and differences arising by and between the parties in respect of the

    agreement/MoU dated 26.10.2018. This appointment is prospective,

    however, subject to receipt of a written declaration as is required under

    section 12(1) of the act of 1996.

    23. Copy of this order be communicated by the Registry of the Court to

    Mr. Justice Achintya Malla Bujor Barua, Former Judge, Gauhati High Court

    prospective arbitrator appointed. The parties are also permitted to furnish

    certified copies of this order.

    24. If the prospective appointment is confirmed upon receipt of such

    written declaration as directed, then the arbitral Tribunal will proceed to

    decide the arbitrability of the disputes between the parties and also the
    Page No.# 23/23

    question regarding the jurisdiction before addressing its attention to the

    various claims and counter-claims of the parties.

    25. List this matter again on 13.05.2026

    JUDGE

    Comparing Assistant



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