High Court Of Delhi
Vikramajit Sen
CHUNNI LAL - Appellant
Versus
RPG HOME FINANCE PVT.LTD. - Respondents
AA 439 Of 1999
Decided On : 09/04/2006
Arbitration - Appointment of Sole Arbitrator - Section 11 - Section 2(l)(b) of the Arbitration and Conciliation Act, 1996 - Section 7 - Section 16 - S. B. P. and Co. v. Patel Engineering Ltd. - Bindra Builders v. B. P. L. Group of Companies
Fact of the Case:
The applicant sought appointment of a sole arbitrator under Section 11 for non-payment issues. The respondent raised objections on maintainability, territorial jurisdiction, and existence of an arbitration clause.
Finding of the Court:
The court overruled objections on maintainability and territorial jurisdiction. It found prima facie evidence of an arbitration clause and disputes for arbitral adjudication. The court referred the disputes to the sole arbitration of Justice R. C. Chopra (Retd.) and disposed of the arbitration petition.
Issues: Maintainability, territorial jurisdiction, existence of an arbitration clause, and full and final settlement between the parties.
Ratio Decidendi: The court has the power to appoint a sole arbitrator under Section 11. Prima facie satisfaction of the existence of an arbitration clause and disputes for arbitral adjudication is required. The court's decision is based on the S. B. P. and Co. v. Patel Engineering Ltd. and Bindra Builders v. B. P. L. Group of Companies cases.
Final Decision: The disputes between the parties are referred to the sole arbitration of Justice R. C. Chopra (Retd.), and the arbitration petition is disposed of.
VIKRAMAJIT SEN, J.
( 1 ) THIS litigation has fallen for consideration de novo for the second time. By Orders dated 23. 7. 2003, a Sole Arbitrator had been appointed by C. K. Mahajan, J. In the Order, it had been stated that the respondent had failed to file Replies and to controvert the statement of facts and allegations made in the application. However, Replies had been filed by respondent No. 1 on 24th december, 1999 to which a Rejoinder had been filed by the applicant on 8th May, 2000. These were overlooked since they had been wrongly filed by the Dealing clerk in Part -. The Orders dated 23. 7. 2003 appointing an Arbitrator came to be set aside by the Supreme Court on this short ground.
( 2 ) THE existence of the following arbitration clause is not in dispute:
"28. All disputes and differences of any kind whatever arising out of or in connection with the Contract or the carrying out of the works (whether during the progress of the works or after their completion and whether before or after the determination, abandonment or breach of the Contract) shall be referred to and settled by the Architect who shall state his decision in writing, such decision may be in the form of a final certificate or otherwise. The decision of the architect with respect to any of excepted matters shall be final and without appeal as stated in the preceding clause. But, if either the Employer or the Contractor be dissatisfied with the decision of the Architect on any matter, question or dispute of any kind (except any of the excepted matters) or as to the withholding by the architect of any certificate to which the Contractor may claim to be entitled, then and in any such case either party (the Employer or the contractor) may within twenty-eight days after receiving notice of such decision give a written notice to the other party through the Architect requiring that such matters in dispute be arbitrated upon. Such written notice shall specify the matters which are in dispute and such dispute or difference of which such written notice has been given and no other shall be and is hereby referred to the arbitration and final decision of a single arbitrator being a Fellow of Indian Institute of Architects to be agreed upon and appointed by both the parties or in case of disagreement as to the appointment of a single Arbitrator, to the arbitration of two Arbitrators both being Fellows of the Indian Institute of Architects, one to be appointed by each party, which Arbitrator shall before taking upon themselves the burden of reference appoint an Umpire. The Arbitrator, the Arbitrators or the Umpire shall have power to open up, review and revise any certificate, opinion, decision, requisition or notice, save in regard to the excepted matters referred to in preceding clause, and to determine all matters in dispute which shall be submitted to him or them and of which notice shall have been given as aforesaid. . . . . . . . . . . . . "
( 3 ) IN brief, the applicant has stated that the entire payment had not been made after the Sixth Running Bill had been cleared. In response to the applicant's letter dated 25. 8. 1998, a Demand Draft of Rs. 9,93,256/- had been received, but a balance had been left outstanding. The applicant's reminder dated 4. 5. 1999 failed to provide any results and efforts of the architect remained futile. As no Arbitrator had been appointed, the applicant had filed the present application under Section 11 defining therein its claim for a sum of Rs. 26,03,445/- with interest at the rate of 15% per annum.
( 4 ) IN the Written Statement the respondent has contended that the Petition is not maintainable as C. L. Construction Company is a sole proprietorship concern and is not a legal entity. A perusal of the Memorandum of Parties will disclose that the petitioner has been arrayed as C. L. Construction Company through its proprietor shri Chunni Lal who has signed the application and the Affidavit in support thereof. In this affidavit Shri Ch
REFERRED TO : Konkan Railway corporation Ltd. v. Rani Construction P. Ltd.
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