SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2021 Supreme(Del) 1286

IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
M/s Inderjit Mehta Constructions Pvt Ltd - Appellant
Versus
Union Of India & Anr. - Respondents
Arbitration Petition No. 899 of 2021
Decided On : 07-12-2021

The court has the authority to appoint a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 when the parties fail to agree on the appointment.

Headnote:

Arbitration - Appointment of Sole Arbitrator - The court allowed the petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 and appointed a sole arbitrator to adjudicate the dispute between the parties.

Fact of the Case:

The petitioner, a private limited company, entered into a construction contract with the respondents. Disputes arose, and despite requests for arbitration and appointment of an arbitrator, the respondents failed to respond. The court had previously appointed an arbitrator, but the proceedings were interrupted due to the arbitrator's passing.

Finding of the Court:

The court allowed the petition and appointed a sole arbitrator to adjudicate the dispute, specifying the appointment of the arbitrator and the fee regulations.

Issues: Appointment of Sole Arbitrator, Compliance with Arbitration and Conciliation Act, 1996

Ratio Decidendi: The court has the authority to appoint a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 when the parties fail to agree on the appointment.

Final Decision: The present petition is allowed, and Mr. Justice (Retd.) Vikramjit Sen is appointed as the sole arbitrator to adjudicate the dispute between the parties.

JUDGMENT

Suresh Kumar Kait, J. - The present petition has been filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator to adjudicate the disputes with respondents.

2. Petitioner is a private limited company registered under the Companies Act, 1956 and is in the business of construction.

3. Respondent Nos.1 and 2 are State under Article 12 of the Constitution of India and are department of UOI under the Ministry of Defence. respondent No.1 is Accepting Officer of the subject Contract and respondent No.2 is the Appointing Authority of Arbitrator.

4. As per the averments made in the present petition, petitioner and respondent No.1 had entered into a contract for Completion of Balance Work for Construction of Dwelling Units including Allied Services for Officers, JCOs/OR's at Kirkee bearing C.A. NO. DGMAP/PHASE-II/PKG-23/A/R&C/04 of 2015-2016. After completion of the work, certain disputes arose and in respect to the same, a notice dated 22.06.2019 invoking arbitration was issued by the petitioner to DGMAP vide letter dated 22.06.2019 but no response was received from the respondents. Again a letter dated 27.07.2019 was issued to respondent No.2 for appointment of arbitrator and the same was received by the respondent No.2 on 30.07.2019. However, despite these requests, respondent No.2 failed to appoint any Arbitrator.

5. Pertinently, petitioner had thereafter approached this Court seeking appointment of Arbitrator [Arbitration Petition No.691 of 2019] and vide order dated 24.01.2020, this Court had appointed Mr. K.B Rai, former Chief Engineer, Punjab (PWD) as Arbitrator. It was further directed by this Court that Arbitration shall be conducted under the aegis of DIAC.

However, the arbitral proceedings couldn't be completed, as the learned ARB.P. 899/2021 Arbitrator expired on 04.05.2021.

6. Learned counsel for petitioner submits that a substituted Arbitrator may be appointed to adjudicate the dispute between the parties and prays that the substituted Arbitrator may not be appointed through DIAC.

7. Learned CGSC appearing on behalf of respondent submits that he has no objection to the appointment of sole Arbitrator by this Court.

8. In view of the above, the present petition is allowed. Accordingly, Mr. Justice (Retd.) Vikramjit Sen (Mobile: 8447333366) is appointed sole Arbitrator to adjudicate the dispute between the parties from the stage where it was left by the earlier Arbitrator.

9. The fee of the learned Arbitrator shall be governed by the Fourth Schedule of the Arbitration and Conciliation Act, 1996.

10. The learned Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act, 1996 before commencing the arbitration.

11. The present petition stands disposed of accordingly.

12. A copy of this order be sent to the learned Arbitrator for information.

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top