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IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
Amit Arora - Appellant
Versus
DLF Home Developers Ltd. - Respondent
O.M.P. (T) (Comm.) 81/2021
Decided On : 23-08-2021
Arbitration - Appointment of Sole Arbitrator - The court allowed the petition seeking appointment of a substituted Arbitrator under the provisions of Section 14 r/w Section 15(2) of the Arbitration and Conciliation Act, 1996. Justice (Retd.) Manmohan Singh was appointed as the Sole Arbitrator to adjudicate the dispute between the parties.
Fact of the Case:
The petitioner sought appointment of an Arbitrator under substitution as per the provisions of the Arbitration and Conciliation Act, 1996, following the demise of the previous Arbitrator, Justice (Retd.) Anil Kumar.
Finding of the Court:
The court allowed the petition and appointed Justice (Retd.) Manmohan Singh as the Sole Arbitrator to adjudicate the dispute between the parties. The court also fixed the fee of the appointed Arbitrator and directed compliance with Section 12 of the Arbitration and Conciliation Act, 1996.
Issues: Appointment of a substituted Arbitrator following the demise of the previous Arbitrator.
Ratio Decidendi: The court relied on the provisions of Section 14 r/w Section 15(2) of the Arbitration and Conciliation Act, 1996 to allow the petition and appoint a new Arbitrator.
Final Decision: The court appointed Justice (Retd.) Manmohan Singh as the Sole Arbitrator to adjudicate the dispute between the parties and provided directions for the arbitration proceedings.
JUDGMENT
(Oral)
The hearing has been conducted through video conferencing.
I.A. 10532/2021(exemption)
1. Allowed subject to all just exceptions.
2. Application is disposed of.
I.A. 10533/2021(exemption)
3. Exemption is allowed with direction to file requisite affidavits within four weeks of this Court resuming normal functioning.
4. Application is disposed of.
O.M.P. (T) (Comm.) 81/2021
5. The present petition has been preferred by the petitioner under the provisions of Section 14 r/w Section 15(2) of the Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator under substitution.
6. Notice issued.
7. Ms. Deveshi Mishra, Advocate, accepts notice on behalf of respondent.
8. Learned counsel for petitioner submits that in respect of Unit No. CGW- 242, Phase -III, DLF Capital Greens and in terms of Clause- 55 of Apartment Buyer's Agreement No. 149 dated 01.04.2011, to adjudicate the disputes and differences between the parties, arbitration proceedings were conducted by Justice (Retd.) Anil Kumar, however, after His demise, a new Arbitrator has to be appointed.
9. Learned counsel for respondent submits that after demise of Justice (Retd.) Anil Kumar, appointment of a substituted Arbitrator has to be made and so, there is no objection to this petition.
10. Learned counsel for petitioner further submits that three names for appointment of sole Arbitrator have been proposed to the respondent.
11. Learned counsel for respondent submits out of the three proposed names, Justice (Retd.) Manmohan Singh be appointed as Arbitrator in this case.
12. In view of the above, the present petition is allowed. Accordingly, Justice (Retd.) Manmohan Singh is appointed the Sole Arbitrator to adjudicate the dispute between the parties.
13. This Court is informed that the arbitration has reached at the stage of final arguments and so, the fee of the learned Arbitrator is fixed at Rs.4,00,000/- (Rupees Four Lacs only) in this case.
14. The learned Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act, 1996 before commencing the arbitration.
15. With aforesaid directions, the present petition is accordingly disposed of.
The main legal point established is the court's authority to appoint a substituted Arbitrator under the provisions of the Arbitration and Conciliation Act, 1996 following the demise of the previous A....
A substituted arbitrator can be appointed under the Arbitration and Conciliation Act, 1996, following the demise of the previous arbitrator without objection from the parties involved.
Point of law : Arbitration Agreement – Death of Arbitrator – On death of arbitrator another arbitration appointed.
The court allows appointment of a substituted Arbitrator without restarting proceedings, ensuring continuity after the original Arbitrator's demise.
Court appointed a new Sole Arbitrator under the Arbitration and Conciliation Act due to the previous Arbitrator's demise, allowing all parties to raise issues before the new Arbitrator.
The necessity to appoint a new Arbitrator is confirmed under Sections 14 and 15 of the Arbitration and Conciliation Act, recognizing the continuation of the arbitration process post-demise of the ori....
The Court's decision was based on the provisions of the Arbitration and Conciliation Act, 1996, allowing for the appointment of a Sole Arbitrator and extension of time for making the award.
In the event of the demise of the sole Arbitrator, a new Arbitrator can be appointed to continue the arbitration proceedings in accordance with Sections 14 & 15 of the Arbitration and Conciliation Ac....
The court has the authority to appoint a substituted Arbitrator when the initially appointed Arbitrator conveys inability to act due to a conflict of interest.
The court ruled that a substituted Arbitrator may be appointed under Section 15(2) of the Arbitration and Conciliation Act, emphasizing the need for the Arbitrator's impartiality and independence.
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