IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
Dlf Home Developers Ltd. - Appellant
Versus
Shipra Estates Ltd & Ors. - Respondents
Arbitration Petition No. 762 of 2021
Decided On : 24-12-2021
Arbitrator Appointment Dispute - Land Dispute - Arbitration and Conciliation Act, 1996 - Section 11(6-A), Section 12 - DLF Home Developers Limited Vs. Rajapura Homes Private Limited & Anr. (2021) SCC OnLine SC 781
Fact of the Case:
The case involves a dispute over a piece of land in Noida, Uttar Pradesh, and the appointment of an arbitrator to adjudicate the disputes raised in the main petition. The respondent sought to recall the order appointing the arbitrator and requested the appointment of a different arbitrator due to a clear nexus between the Loan Agreements and Agreement to Sell. The petitioner claimed that the appointment was made without their consent and sought the appointment of a different arbitrator.
Finding of the Court:
The court found that the respondent did not dispute the need for arbitration but objected to the specific appointment of the arbitrator. The court also noted that the appointment was made after careful consideration and in accordance with the Arbitration and Conciliation Act, 1996. The court allowed the application and appointed a different arbitrator, considering the related matters already before the other arbitrator.
Issues: The main issue was the appointment of the arbitrator, with the respondent seeking to modify the appointment made by the court. The court also considered the nexus between the disputes and related matters already before another arbitrator.
Ratio Decidendi: The court's decision was based on the provisions of the Arbitration and Conciliation Act, 1996, particularly Section 11(6-A) and Section 12. The court also considered the jurisdiction of the court to appoint an arbitrator and the need to streamline the arbitration process.
Final Decision: The court allowed the application, recalled the previous appointment, and appointed a different arbitrator, considering the related matters already before the other arbitrator.
JUDGMENT
Suresh Kumar Kait, J. - I.A.14662/2021 (u/S 151 CPC filed by respondent No.1)
1. Against the order dated 12.08.2021 passed by this Court, wherein this Court had appointed Mr.Justice (Retd.) Pankaj Jaiswal the sole Arbitrator to adjudicate the disputes raised in the main petition, respondent No.1- Shipra Estates Ltd. had preferred a Special Leave Petition [Special Leave to Appeal (C) No(s). 13913/2021], which was disposed of on 27.09.2021 by the Honble Supreme Court holding as under:-
"Mr. Kapil Sibal, learned senior counsel contends that the concession given by the advocate appearing for the petitioner before the High Court was only to agree to the appointment of Arbitrator, but not for appointing Justice (Retd.) Pankaj Jaiswal, Former Judge of the High Court of Judicature at Allahabad, Uttar Pradesh. For, Justice Vikramajit Sen, Former Judge of the Supreme Court of India was already appointed by the Court vide order dated 02.08.2021.
This grievance cannot be entertained by way of special leave petition. It is for the High Court to clarify the position as to whether the learned counsel appearing for the petitioner had or had not agreed on the name of the Arbitrator mentioned in the impugned order dated 12.08.2021. The petitioner may take out an appropriate application before the High Court."
2. Pursuant to the aforesaid order of the Honble Supreme Court, applicant/ defendant No.1 has preferred the present application inter alia praying that the order dated 12.08.2021 be recalled to the extent of appointment of Mr. Justice (Retd.) Pankaj Jaiswal as Arbitrator, as defendant No.1 never consented to this appointment and has further sought modification to the effect that Mr. Justice (Retd.) Vikramajit Sen be appointed as Arbitrator in this case.
3. At the hearing, Mr. Rakesh Khanna, learned senior counsel appearing on behalf of applicant/ respondent No.1 submitted that the judgment dated 12.08.2021 was passed by this Court without affording an opportunity of hearing to respondent No.1 and that counsel appearing on behalf of respondent No.1 was unable to place before this Court the order dated 02.08.2021 passed by a Coordinate Bench of this Court in [ARB.P. 513, 514 & 516 of 2021, Annexure-A4] wherein Mr. Justice (Retd.) Vikramajit Sen was appointed sole Arbitrator to adjudicate the disputes with regard to Loan Agreements mentioned therein.
4. Learned senior counsel next submitted that the Loan Agreements and Agreement to Sell dated 30.05.2021 have a clear nexus and so, to avoid conflicting Awards, these cases should be referred to a common arbitral tribunal. In support of his submissions, learned senior counsel relied upon decision of Honble Supreme Court in DLF Home Developers Limited Vs. Rajapura Homes Private Limited & Anr. (2021) SCC OnLine SC 781.
5. The present application is vehemently opposed by Mr. Rajiv Nayar, learned senior counsel appearing on behalf of respondent No.4, who submitted that at the time of hearing on 12.08.2021, learned counsel appearing on behalf of defendant No.1 had accorded concession to the appointment of Arbitrator by this Court and did not at all recommend the name of Mr. Justice (Retd.) Vikramajit Sen, even though this Court had called upon the parties to put-forth their recommendations for appointment of Arbitrator and it is only when no recommendation was made, that this Court had appointed the Arbitrator.
6. It was emphatically submitted by learned senior counsel for respondent No.4 that the earlier round of petitions [ARB.P. 513, 514 & 516 of 2021, Annexure-A4] wherein Mr. Justice (Retd.) Vikramajit Sen has been appointed the sole Arbitrator pertain to loan agreements executed between 2017 and 2020, whereas in the present petition the dispute is with regard to Agreement to Sell dated 30.05.2021 and even the parties to the Agreements in question are also different. It was further submitted that the claimants in arbitral proceedings before Mr. Justice (Retd.) Vikramajit Sen is Shipra Estate Limit
The main legal point established in the judgment is the court's authority to appoint an arbitrator under the provisions of the Arbitration and Conciliation Act, 1996, and the need to consider related....
The court clarified the necessity of mutual consent in the appointment of arbitrators to avoid conflicting awards and emphasized the importance of transparency regarding prior appointments.
The main legal point established in the judgment is that the appointment of an arbitrator must be in accordance with the law, and if found to be invalid, the court has the jurisdiction to set it asid....
An arbitrator's appointment must adhere to the agreed procedure; failure to do so renders the appointment invalid under Section 11(6) of the Arbitration Act.
Point of Law : S.13(2) provides that a party who intends to challenge appointment of an arbitrator shall, within fifteen days after becoming aware of the constitution of the arbitral tribunal or afte....
The main legal point established in the judgment is that the appointment of an arbitrator must be in accordance with the agreed procedure in the contract. If the appointment is not in line with the a....
The High Court's appointment of an arbitrator under Section 11(6) does not grant it jurisdiction over objections to the arbitral award under Section 34; objections must be heard in the proper princip....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.