Authority: High Court at Calcutta, Circuit Bench at Jalpaiguri
Order Date: 29.09.2026
Case Overview
- Parties: PCM Resorts and Developers Private Limited (petitioner) vs. The State of West Bengal and others (respondents).
- Nature: Application under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator after the respondents failed to do so.
- Background: The dispute arose from the development of "Star Category Eco Resort‑1" within the Bhorer Alo Eco Tourism Project at Gajoldoba, Jalpaiguri, under a lease agreement between the Government of West Bengal, Department of Tourism, and PCM Resorts.
- Contract Clause: Article 13 (specifically clause 5) mandates that any dispute not resolved amicably within thirty (30) days shall be referred to arbitration by either party, with the arbitrator to be a retired High Court Judge or senior retired government official, and the Arbitration and Conciliation Act, 1996 shall apply.
- Arguments: Respondents argued the arbitration clause was not a conclusive agreement, citing Supreme Court decisions in Jagdish Chander v. Ramesh Chander (2007) and Nagreeka Indcon Products Pvt. Ltd. v. Cargocare Logistics (India) Pvt. Ltd. (2026). Petitioner's counsel relied on Babanrao Rajaram Pund v. Samarth Builders and Developers (2022) supporting the existence of a binding arbitration clause.
- Court Reasoning: The Court examined the contractual language, Supreme Court precedents, and the intent of the parties. It concluded that the clause unequivocally created an arbitration agreement, despite the absence of the words “final and binding.” The Court emphasized a pragmatic approach, referencing Enercon (India) Ltd. v. Enercon GmbH (2014) for filling gaps in arbitration clauses, and upheld the parties’ autonomy to resolve disputes through arbitration.
Final Outcome
- The application under Section 11 is allowed.
- Justice Manjula Chellur, a retired Chief Justice of the Calcutta High Court, is appointed as the sole arbitrator (contact: Mobile 8017366666; Email manjulachellur@gmail.com).
- Arbitrator’s fees shall be mutually agreed between the parties or determined as per Schedule 4 of the Arbitration and Conciliation Act, 1996.
- No order as to costs.
- Parties and the Registry must communicate a copy of this order to the appointed arbitrator and upload the server copy on the Court’s official website.
Topics: Arbitration, Contract Dispute, Tourism Development