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2021 Supreme(Del) 1316
IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
Sarvesh Security Services Pvt Ltd - Appellant
Versus
Guru Govind Singh Govt Hospital - Respondent
Arbitration Petition No. 1129 of 2021
Decided On : 13-12-2021
Senha Singh, Advocate, Deepika Singh, Advocate
The court's decision highlights the importance of honoring contractual obligations and the enforceability of arbitration clauses in commercial contracts.
Headnote:
Arbitration - Appointment of Arbitrator - The court allowed the petition filed under Section 11 (6) (c) of the Arbitration and Conciliation Act, 1996, appointing a sole Arbitrator through DIAC to adjudicate the dispute between the parties.
Fact of the Case:
The petitioner, a private Ltd. Company, provided security services to the respondent hospital as per a contract. Disputes arose when the respondent failed to release payment for the services rendered.
Finding of the Court:
The court found that the respondent had failed to oppose the petition, and therefore, appointed a sole Arbitrator to adjudicate the dispute between the parties.
Issues: Failure of the respondent to release payment for security services rendered and failure to participate in arbitration as per the contract terms.
Ratio Decidendi: The court's decision was influenced by the respondent's failure to oppose the petition and the petitioner's request for arbitration as per the contract terms.
Final Decision: The court allowed the petition, appointing a sole Arbitrator through DIAC to adjudicate the dispute between the parties.
JUDGMENT
Suresh Kumar Kait, J. - The present petition has been filed under Section 11 (6) (c) of the Arbitration and Conciliation Act, 1996 seeking appointment of Arbitrator to adjudicate the disputes with respondent.
2. On the last date of hearing, i.e. 26.11.2021, Mr. Zahid, Advocate had appeared on behalf of respondent, accepted notice and sought time to take instructions and assist the Court.
3. Today, even on second call, none has appeared on behalf of respondent. Thus, it seems that respondent has nothing to oppose the present petition.
4. Petitioner claims to be a private Ltd. Company incorporated under the Indian Companies Act, 1956. Petitioner Company provides security services to Government and private organisations. Respondent is a hospital.
5. As per the averments made in the present petition, vide tender No.2015_GCSGH_74369_1 dated 02.01.2015, respondent invited tenders for providing security services to respondent hospital. Thereafter, vide letter dated 10.04.2015, respondent offered contract for deployment of security guards in premises of petitioner on the terms and conditions mentioned in the aforesaid tender. Being successful bidder, respondent awarded the contract to petitioner vide letter dated 24.04.2015 to deploy the security guards w.e.f. 01.05.2015.
6. At the hearing, learned counsel for petitioner has submitted that despite repeated requests, respondent has failed to release a sum of Rs.62,68,890/- (approximately) to petitioner for the security services rendered to respondent from May, 2015 till July, 2019. Thereafter, disputes arose between the parties.
7. It is further submitted that vide letter dated 15.06.2021, petitioner requested respondent to participate in arbitration in terms of Clause 22 of the tender, however, respondent has failed to clear dues or to invoke arbitration.
Hence, the present petition has been filed.
8. During the course of hearing, learned counsel for petitioner has prayed that sole Arbitrator may be appointed through DIAC to adjudicate the dispute between the parties.
9. In view of the above, the present petition is allowed. Accordingly, Mr. D.C.Anand, DHJS (Retd) (Mobile: 9910385644) is appointed sole Arbitrator in this petition to adjudicate the dispute between the parties.
10. The arbitration shall be conducted under the Delhi International Arbitration Centre (DIAC). The fee of the Arbitrator shall be in accordance with the schedule of fees prescribed under the Delhi International Arbitration Centre (Administrative Cost and Arbitrators Fees) Rules, 2018.
11. The learned Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act, 1996 before commencing the arbitration.
12. The present petition stands disposed of accordingly.
13. A copy of this order be sent to the learned Arbitrator for information.
