CLOSE
09 September 2021 | Jaipur Zila Dugdh Utpadak Sahkari Sangh Limited and others v. Ajay Sales & Suppliers & connected matters | Special Leave Petitioner (Civil) 135 of 2020 | MR Shah & Aniruddha Bose JJ | Supreme Court of India | 2021 SCC OnLine SC 730
Popularly known as Jaipur Dairy, the appellant is an entity registered under the Rajasthan co-operative laws. It entered into a distributorship agreement for the distribution of milk and buttermilk before the 2015 Amendments. The arbitration clause made a provision for resolution of any dispute by the sole arbitrator, the Chairman of Jaipur Dairy. During the pendency of the arbitrator proceedings, the respondent applied to the High Court to appoint an independent arbitrator on the ground that the arbitrator was ineligible. The High Court allowed the petition. The Supreme Court upheld the High Court’s order rejecting all objections. It noted the 2015 Amendments, the decisions after the amendments with the conspicuous exception of Perkins.
The court also rejected an argument that the dispute was required to be resolved by the Registrar under Section 58 of the Rajasthan Cooperative Societies Act, 2001. It noted that “despite Section 58 … there is an agreement between the parties to resolve the dispute through arbitrator-Chairman. Parties are bound by the agreement and the arbitration clause ….”
Read the decision here.