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Supreme Court of India

NIRMAL SOFTWARE SERVICE (P) LTD vs DR. BABASAHEB AMBEDKAR MARTHWADA UNIVERSITY on 9 July, 2019

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2019 INSC 739SLP(C) No.-030863 - 2018Official PDFAuthor Abhay Manohar SapreBench Abhay Manohar Sapre, Indu MalhotraAdvocates ANAGHA S. DESAI
REPORTABLE
NON­
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
Special Leave Petition (C) No. 30863 of 2018
Nirmal Software Services Pvt. Ltd. …Petitioner
Versus
Dr. Babasaheb Ambedkar
Marathwada University & Ors. …Respondents
ORDER

The present Special Leave Petition has been filed challenging

Final Judgment & Order dated 18.09.2018 in Writ Petition No. 1413

On 20.10.2012 the Petitioner entered into a MoU with the

Respondent – University whereby the Respondent – University

entrusted the work of ‘Web Enabling’ and providing necessary web

services to the Petitioner. The MoU was Amended on 07.04.2016

whereby Clause 3.5 was inserted, which reads as under :

“3.5 Dr. Bamu & NSSPL shall mutually decide, finalize

and agree upon the Terms & Conditions including

financial terms to handover the Intellectual Property

Rights, Ownership Transfer to DR. BAMU as and when

required and decided upon.”

The said MoU contained an arbitration clause which reads as

under :

“12. ARBITRATION

12.1 All and any disputes and claims arising out of or

relating in any manner to this MoU or a breach,

termination, non-performance, interpretation or

validly thereof, shall first be discussed in good

faith by officers duly nominated for the purpose

by each party, with a view to resolving the same.

12.2 All and any disputes and claims as aforesaid,

which cannot be fully and satisfactorily resolved

or settled by the parties as aforesaid, shall at the

request of either party, be submitted at

Aurangabad to arbitration. In such a case, a

joint request by NSSPL and BAMU will be made

to an eligible and competent person to act as an

Arbitrator. The appointment and the

proceedings of arbitration will be subject to the

provisions of Indian Arbitration & Conciliation

Act, 1996 as amended from time to time. The

cost of appointing the arbitrator shall be equally

shared by the parties herein.”

Disputes arose between the parties with respect to certain

communication issued by the Respondent – University, whereby the

purchase order in favour of the Petitioner, executed in furtherance

of the MoU, was kept in abeyance.

The Petitioner filed Writ Petition No. 1413 of 2017 before the

High Court of Judicature at Bombay, Aurangabad bench praying for

a Writ of Mandamus directing the Respondent – University to

forthwith make payment of the entire consideration under the

purchase Order dated 13.05.2019 and declare the action of the

Respondent – University in keeping the purchase order in abeyance

is illegal and void.

The High Court on 18.09.2018 dismissed the Writ Petition

filed by the Petitioner on the ground that the MoU entered into

between the parties clearly contains an arbitration clause, which

must be given effect to.

Aggrieved, the Petitioner has filed the present SLP. During the

course of hearing, this Court vide Order dated 08.04.2019 recorded

the submission of the Counsel for the Petitioner to refer the issue to

arbitration in terms of the MoU. On the basis of this statement,

notice was issued to the Respondent.

On 08.07.2019, the parties jointly requested for the

appointment of Mr. Justice Pratap Hardas (Retd.) Judge of the

Bombay High Court, as the Sole Arbitrator.

On the joint request of the parties, we appoint Mr. Justice

Pratap Hardas (Retd.) as the Sole Arbitrator, subject to the

declarations being made under Section 12 of the Arbitration and

Conciliation Act, 1996 with respect to independence and

impartiality, and the ability to devote sufficient time to complete the

arbitration within the period of 12 months. The parties have agreed

to pay fees to the Arbitrator in accordance with the Fourth Schedule

to the Arbitration and Conciliation Act, 1996 as amended. As per

the MoU, the seat/place of arbitration shall be Aurangabad.

A copy of this Order be dispatched to Mr. Justice Pratap

Hardas (Retd.). The matter is disposed of accordingly. Pending

applications, if any, stand disposed of.

(INDU MALHOTRA) New Delhi July 9, 2019.