2007 Supreme(Del) 899
High Court Of Delhi
VIPIN SANGHI
ROTARY CLUB OF DELHI MIDTOWN - Appellant
Versus
SUNIL K. JAIN - Respondents
OMP 3 Of 2005
Decided On : 04/30/2007
K.B.ROHTAGI, MAHESH KASANA, Nidhi Jain, RAMAN KAPUR
The main legal point established in the judgment is that the arbitrator must conduct proceedings in accordance with the principles of natural justice and treat the parties impartially, providing them with a full and equal opportunity to present their case.
Headnote:
Arbitration - Membership Dispute - Manual of Procedures, 2001 of Rotary International - [MEMBERSHIP DISPUTE] - [Arbitration and Conciliation Act, Section 11(6)] - [The court discussed the arbitration award and the principles of natural justice. The court found that the arbitrator conducted the proceedings in accordance with the principles of natural justice and treated the parties impartially, providing them with a full and equal opportunity to present their case. The court dismissed the petition with costs of Rs. 10,000.]
Fact of the Case:
The petitioner, Rotary Club of Delhi Midtown, challenged an arbitration award regarding the termination of the respondent's membership. The respondent sought the appointment of an arbitrator under the Arbitration and Conciliation Act, Section 11(6). The arbitrator conducted the proceedings in accordance with the Manual of Procedures, 2001 of Rotary International.
Finding of the Court:
The court found that the arbitrator had conducted the proceedings in accordance with the principles of natural justice and treated the parties impartially, providing them with a full and equal opportunity to present their case. The court dismissed the petition with costs of Rs. 10,000.
Issues: The issues included the alleged violation of the principles of natural justice by the arbitrator and the lack of notice for certain proceedings.
Ratio Decidendi: The court held that the arbitrator had conducted the proceedings in accordance with the principles of natural justice and treated the parties impartially, providing them with a full and equal opportunity to present their case.
Final Decision: The court dismissed the petition with costs of Rs. 10,000.
VIPIN SANGHI, J.
( 1 ) THE petitioner Rotary Club of Delhi Midtown impugns the arbitration award dated 18. 9. 2004 passed by the Sole Arbitrator Sh. O. P. Vaish, Senior advocate, who is also a member of the petitioner club. The respondent was earlier a member of Rotary Club Delhi University since 1985. He continued to remain a member of the said club until 31. 12. 2000. He resigned from Rotary Club delhi University and applied to become a member of the petitioner club. He was inducted as a member of the petitioner club w. e. f. 19. 1. 2001. It appears that all steps as per the manual of procedures for induction of a new member were undertaken by the petitioner club. The petitioner was invited to attend six club meeting prior to his induction which he attended.
( 2 ) IT appears that the then Secretary of Rotary Club Delhi University, Sh. Rajesh Saini wrote a letter dated 23. 5. 2001 to the respondent with a copy marked, inter alia, to the Secretary of the petitioner club alleging that there have been some irregularities about one RCC (Rotary Community Corps) Project and that the respondent was not returning the property of the club involved in that project. This communication was sent after nearly six months of the induction of the respondent into the petitioner club.
( 3 ) BASED on the aforesaid communication of Sh. Rajesh Saini, the petitioner club apparently issued a communication on 1. 6. 2001 to the petitioner asking him to explain and clarify his stand on the issue. A reply was submitted by the respondent on 9. 6. 2001. The respondent categorically denied the allegations made against him. He stated that there was no outstanding due payable by him to the rotary Club Delhi University. Being a rotarian he had offered some space on his farm house to the said club for setting up a centre rendering free services to the villagers of village Hamid Pur. He further stated that despite repeated requests by the villagers, neither any expenses were being paid by the club for running of the centre, nor an alternative place was provided for shifting the centre. At that stage the villagers had no choice but to shift the centre of their own to some other place in the village under intimation to the then president. He further stated that no one from the club visited the centre after its shifting and it was only the respondent who used to sometimes visit the centre and contribute from his own pocket some money for keeping the centre running.
( 4 ) IT appears that the Rotary Club Delhi University sent another communication on 11. 6. 2001 to the petitioner club stating that Sh. Pramod Goyal, the then President of the said club had no authority to issue and had not issued a 'no Objection'/'no Dues' Certificate in favour of the respondent herein, which had been submitted by the respondent to the petitioner club at the time of his seeking membership thereof. Yet another communication of 1. 8. 2001 was issued by the Honorary Secretary of Rotary Club Delhi University, once again making the same allegations as before by stating that the respondent had not cleared the dues of the club and that the certificate produced by the respondent had not been signed by Sh. Pramod Goyal, the then President of the club.
( 5 ) THE petitioner constituted a committee of three members, which recommended that the respondent be required to obtain a fresh 'no Objection certificate' from the current office bearers of Rotary Club Delhi University. The petitioner club, on 5. 10. 2001, issued a communication to the respondent acting on the various communications received from the Rotary Club Delhi university, and conveyed its decision to provide one opportunity to the respondent to arrange a 'no Objection' Certificate and the recommendation for his candidature duly signed by the President and Honorary Secretary of Rotary club Delhi University within 15 days from the date of the said letter, failing which, it was stated, that his membership to the club would stand term