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IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
RG Icon, Plumbing And Firefighting Contractors - Appellant
Versus
BPTP Limited - Respondent
Arbitration Petition No. 970 of 2021
Decided On : 09-12-2021
Arbitration - Appointment of Sole Arbitrator - The court allowed the petition filed under Sections 11 (5) & 11 (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator to adjudicate the disputes with the respondent.
Fact of the Case:
The petitioner, a partnership firm, was awarded a work contract by the respondent for plumbing sanitary fixtures and fitting. Disputes arose between the parties due to delays in the execution of work by the respondent, leading to the petitioner invoking arbitration in accordance with the arbitration clause of the work order.
Finding of the Court:
The court allowed the petition and appointed Mr. Sukumar Pattjoshi as the sole Arbitrator to adjudicate the dispute between the parties. The arbitration is to be conducted under the Delhi International Arbitration Centre (DIAC) and 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.
Issues: Appointment of Sole Arbitrator, Compliance with Section 12 of Arbitration and Conciliation Act, 1996
Ratio Decidendi: The court found that the petitioner's invocation of arbitration in accordance with the arbitration clause of the work order was valid, and therefore allowed the petition for the appointment of a sole Arbitrator. The court also emphasized the need for compliance with Section 12 of the Arbitration and Conciliation Act, 1996 before commencing the arbitration.
Final Decision: The court allowed the petition, appointed Mr. Sukumar Pattjoshi as the sole Arbitrator, and directed compliance with Section 12 of the Arbitration and Conciliation Act, 1996 before commencing the arbitration.
JUDGMENT
Suresh Kumar Kait, J. - The present petition has been filed under Sections 11 (5) & 11 (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator to adjudicate the disputes with respondent.
2. As per the averments made by petitioner, petitioner is a partnership firm dealing in Firefighting and Plumbing contracts. Petitioner was awarded work contract by the respondent for plumbing sanitary fixtures and fitting for the project known as Park Elite Premium, Sector-84, Faridabad, Haryana vide Work Order No.BPTP /Parkland /PEP/S84/17/WO-69 dt 23.05.2017 for contract value of Rs.1,84,54,537/-. The work order was amended number of times as to contract value and lastly by the letter of the respondent dated 20.08.2020 and its value was reduced from Rs.1,84,54,537/- finally to Rs.1,22,71,221/-. The work under the original Work Order was to be completed within a period of nine months. Petitioner with an intention to timely complete the work gathered its equipments and personnel etc. Respondent, however, on various counts delayed execution of work as a result of which, the staff, labour & equipments of petitioner were kept idle. Thereafter, disputes arose between the parties.
3. Petitioner sent a legal notice to respondent on 08.07.2021 for invoking arbitration in terms of the Arbitration clause of the Work Order dated 08.07.2021. However, respondent failed to respond to the notice. Therefore, the present petition has been filed.
4. Pursuant to order dated 09.11.2021, Mr. Nitish K. Sharma, appears before this Court and has not objected to the appointment of sole Arbitrator for adjudication of dispute between the parties.
5. In view of the above, the present petition is allowed. Accordingly, Mr. Sukumar Pattjoshi, Senior Advocate (Mobile: 9810021791) is appointed sole Arbitrator in this petition to adjudicate the dispute between the parties.
6. 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.
7. The learned Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act, 1996 before commencing the arbitration.
8. The present petition stands disposed of accordingly.
9. A copy of this order be sent to the learned Arbitrator for information.
The court's decision emphasizes the validity of invoking arbitration in accordance with the arbitration clause of the work order and the importance of compliance with Section 12 of the Arbitration an....
The court has the authority to appoint a sole Arbitrator when disputes arise under an arbitration clause and the responding party does not object to the appointment.
The court's decision emphasized the appointment of a sole Arbitrator to adjudicate disputes under the Arbitration and Conciliation Act, 1996.
The court upheld the arbitrability of disputes arising from contractual obligations, appointing a sole arbitrator under the Arbitration and Conciliation Act.
The court upheld the petition for arbitration despite limitation concerns, emphasizing that disputes surrounding contract payments necessitate resolution by the appointed arbitrator.
Unilateral appointment of an arbitrator is impermissible; parties must appoint an arbitrator jointly or seek court appointment to ensure unbiased dispute resolution.
The court directed the appointment of a sole arbitrator under the Arbitration and Conciliation Act, 1996 to resolve contract disputes, affirming the arbitrability of the issues.
Appointment of a sole arbitrator must comply with the provisions of the Arbitration and Conciliation Act, 1996 and should not be in violation of relevant legal precedents.
The main legal point established in the judgment is the court's authority to appoint an independent arbitrator for adjudication of disputes based on the arbitration agreement.
No single party can be permitted to unilaterally appoint the Arbitrator, as it would defeat the purpose of unbiased adjudication of dispute between parties.
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