IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
City Sweep Services Llp - Appellant
Versus
South Delhi Municipal Corporation - Respondent
Arb. P. 862/2021 & Arb. P. 863/2021
Decided On : 22-09-2021
Arbitration - Appointment of Arbitrator - Disputes under Contract Agreement
Fact of the Case:
Disputes arose between the parties regarding payment of monthly contract fee and bills under the Contract Agreement. An arbitrator was appointed for disputes from October 2011 to December 2016, and the petitioner sought appointment of another arbitrator for disputes from January 2017 to June 2018.
Finding of the Court:
The Court appointed the same arbitrator for the disputes from January 2017 to June 2018, as the arbitrator appointed for the earlier period was already seized of the matter. The fees of the arbitrator were determined according to the Fourth Schedule of the Arbitration and Conciliation Act, 1996, and compliance with Section 12 of the Act was mandated before commencing the arbitration.
Issues: Appointment of arbitrator for subsequent disputes under the Contract Agreement
Ratio Decidendi: The Court deemed it fit to appoint the same arbitrator for subsequent disputes as the arbitrator appointed for the earlier period was already seized of the matter.
Final Decision: The Court appointed the same arbitrator for the subsequent disputes and mandated compliance with the Arbitration and Conciliation Act, 1996 before commencing the arbitration.
JUDGMENT
(Oral)
1. The above captioned two petitions have been filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator to adjudicate the disputes between the parties.
2. Since the parties to these petitions and subject matter thereof is more or less similar, therefore, with the consent of counsel representing both the sides, these petitions have been heard together and are being disposed of by this common judgment.
3. According to petitioner, for the work of for sweeping of roads, respondent had invited bids and being the lowest bidder, the petitioner was awarded the work under a Contract Agreement dated 03.06.2011, whereunder petitioner was given the work order to Sweeping of Roads having Right of Way (ROW) > 100 feet [in ARB.P.862/2021] and for Sweeping of Roads having Right of Way (ROW) > 60 Feet and < 100 feet [in ARB.P.863/2021]. Further, as per clause 2.3 of the Contract Agreement, the term of the Contract Agreement was for a period of seven (7) years, commencing from 01.10.2011 in the Central Zone [in ARB.P.862/2021] and in Central Zone and Najafgarh Zone [in ARB.P.863/2021]. The petitioner claims to have continued to work for respondent till June, 2018 in both the cases.
4. It is averred on behalf of petitioner that certain disputes with regard to payment of monthly contract fee and payment of bills under the Contract Agreement arose between the parties, which are required to be adjudicated.
5. During the course of hearing, it has been brought to the notice of this Court by learned counsel for the petitioner that for resolution of disputes inter se parties pertaining to the period October, 2011 till 31.12.2016, Mr. Justice (Retd.) Manmohan Sareen was appointed sole Arbitrator under the orders of this Court and the learned tribunal is seized of the matter. It is further submitted that disputes pertaining to the period from January, 2017 till June, 2018 are only required to be adjudicated by the Arbitrator sought to be appointed.
6. Learned counsel appearing on behalf of respondent has opposed the claims made in these petitions, however, the factum of appointment of Mr. Justice (Retd.) Manmohan Sareen for resolution of disputes inter se parties pertaining to the period October, 2011 till 31.12.2016, is not disputed.
7. In view of the above, keeping in mind that disputes inter se parties for the period October, 2011 till 31.12.2016 with regard to Contract Agreements dated 03.06.2011, Mr. Justice (Retd.) Manmohan Sareen is seized of the matter, this Court deems it fit to appoint him as Arbitrator in these petitions as well.
8. The fees of the learned Arbitrator shall be according to Fourth Schedule of the Arbitration and Conciliation Act, 1996.
9. The learned Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act, 1996 before commencing the arbitration.
10. A copy of this order be sent to the learned Arbitrator for information.
The principle of continuity in arbitration appointments and the requirement for compliance with the Arbitration and Conciliation Act, 1996.
The appointment of the same Arbitrator for overlapping disputes ensures consistent adjudication under the Arbitration and Conciliation Act, 1996.
The court appointed an arbitrator as the parties consented to arbitration under the existing arbitration clause, complying with statutory requirements.
The court's authority to appoint an arbitrator in cases where the parties are unable to agree, in accordance with the law laid down by the Supreme Court and the provisions of the Arbitration & Concil....
The court has jurisdiction to appoint an arbitrator when parties cannot agree, reaffirming the necessity to comply with provisions of the Arbitration and Conciliation Act, 1996.
The consent of both parties to appoint a sole arbitrator underscores the principle of mutual agreement in arbitration proceedings under the Arbitration and Conciliation Act, 1996.
The court's decision was based on the interpretation of the Dispute Resolution clause in the Contract Agreement and the provisions of Section 11 of the Arbitration and Conciliation Act, 1996.
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.
Court has the discretion to appoint a new Arbitrator to continue unresolved arbitration proceedings, affirming continuity even after the previous Arbitrator's death.
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