IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
J.H. Jewellers & Anr. - Appellants
Versus
Asian Hotels (north) Ltd. - Respondent
Arb.P. 661/2021, Arb.P. 665/2021, Arb.P. 667/2021, Arb.P. 668/2021, O.M.P.(I) (Comm.) 244/2021, O.M.P.(I) (Comm.) 245/2021, O.M.P.(I) (Comm.) 248/2021, O.M.P.(I) (Comm.) 249/2021
Decided On : 06-08-2021
Arbitration - Appointment of Arbitrators - Section 11(6) of Arbitration and Conciliation Act, 1996 - Section 17 - 11. That in case of any dispute, difference, between the company and you, with regard to any matter including interpretation of this agreement and the clarification thereof, the same shall be referred to the joint arbitration of the Chairman of the Company or any person appointed by the Chairman and the arbitrator appointed by you, whose decision shall be final and binding between the parties and shall not be questioned in any court of law. - The petitions were heard together and disposed of under Section 17 of the Act. The agreement dated 01.09.1982 contains an arbitration clause. The petitioners invoked arbitration, which was not disputed by the respondents. The court rejected the contention of the petitioners to appoint an arbitrator of their choice, citing the element of exclusivity in determining or charting the course for dispute resolution. The court appointed Mr. R. L. Meena as the Sole Arbitrator to adjudicate the dispute between the parties, in compliance with the Fourth Schedule of the Arbitration and Conciliation Act, 1996. The respondent was restrained from taking any action against the petitioners until the Arbitrator enters into reference.
Fact of the Case:
The petitions were filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of Arbitrators for adjudication of disputes between the parties. The petitioners contended that they were in exclusive possession of the shops in question and the respondent's notice revoking the license did not mention any violation of the terms and conditions of the license/lease agreement by petitioners. The petitioners invoked arbitration, which was not disputed by the respondents.
Finding of the Court:
The court rejected the contention of the petitioners to appoint an arbitrator of their choice, citing the element of exclusivity in determining or charting the course for dispute resolution. The court appointed Mr. R. L. Meena as the Sole Arbitrator to adjudicate the dispute between the parties, in compliance with the Fourth Schedule of the Arbitration and Conciliation Act, 1996. The respondent was restrained from taking any action against the petitioners until the Arbitrator enters into reference.
Issues: The main issue was the appointment of Arbitrators for adjudication of disputes between the parties under Section 11(6) of the Arbitration and Conciliation Act, 1996. The court also addressed the contention of the petitioners to appoint an arbitrator of their choice.
Ratio Decidendi: The court rejected the contention of the petitioners to appoint an arbitrator of their choice, citing the element of exclusivity in determining or charting the course for dispute resolution. The court relied on the decisions of the Hon’ble Supreme Court and Coordinate Benches of the Court, emphasizing the unbiased adjudication of disputes between the parties.
Final Decision: The court appointed Mr. R. L. Meena as the Sole Arbitrator to adjudicate the dispute between the parties, in compliance with the Fourth Schedule of the Arbitration and Conciliation Act, 1996. The respondent was restrained from taking any action against the petitioners until the Arbitrator enters into reference.
JUDGMENT
(Oral)
The hearing has been conducted through video conferencing.
1. The above captioned first four petitions have been preferred under Section 11(6) of Arbitration and Conciliation Act, 1996 seeking appointment of Arbitrators for adjudication of disputes between the parties.
2. Since the relief sought by the petitioners in these petitions is more or less similar against a common respondent, therefore, with the consent of counsel for the parties, these petitions have been heard together and are being disposed of by this common order.
3. Petitioner No.1 in the above captioned first petition [ARB. P. 661/2021] is a proprietorship firm at L-81, Shopping arcade, Hotel Hyatt Regency, Bhikaiji Cama Place, New Delhi and petitioner No.2 is the proprietor.
4. In the third captioned petition, [ARB. P. 667/2021], petitioner No.1 is a partnership firm and petitioner No.2 is the partner of the firm, who are having their office L- 79, Shopping arcade, Hotel Hyatt Regency, Bhikaiji Cama Place, New Delhi.
5. Petitioner No.1/firm in first captioned petition and third captioned petition are similar. According to petitioner firm, on 01.09.1982 a license agreement along with a supplementary agreement was entered between petitioner (previously known as M/s Virender Kumar & Co.) and respondent in respect of shops in question, which was renewable every five years at the option of petitioner. The case of petitioner is that after change of name of petitioner/firm from M/S Virender Kumar & Co. to M/S Sital Dass Sons, an additional space adjacent to shop L-79 viz L-79 Extn. (Renumbered as L-81) (273 sq. ft.) in the same shopping arcade was granted by the respondent to M/S Sital Dass Sons vide supplementary agreement dated 10.08.1984 and the terms of original license agreement dated 01.09.1982 were to be read along with agreement dated 10.08.1984. Vide letter dated 01.01.1992, M/S Sital Dass Sons through its partners informed the respondent that they shall be operating under two different names i.e. M/S Sital Dass Sons represented by Rajendra Kumar Rakyan in shop No. L-79 ( 490 sq. ft.) and the other represented by Mr. Jitendra Rakyan in shop no. L-79 Extn. (Renumbered as L-81)(273 sq. ft.).
6. In the second petition [ARB. P. 665/2021], petitioner No.1 is a partnership firm and petitioner No.2 is the partner of the firm, at L-73, Shopping arcade, Hotel Hyatt Regency, Bhikaiji Cama Place, New Delhi. Petitioner No.1 had entered into a license agreement as well as supplementary agreement, both dated 09.09.1992, with respondent in respect of shop in question, which was renewable every five years at the option of respondent, who had further vide letter dated 0 1.04.1996 transferred the ownership of the said shop from petitioner No.1 to petitioner No.2.
7. In above captioned fourth petition [ARB. P. 668/2021], petitioner No.1/firm who was earlier a partnership firm, by virtue of a dissolution deed dated 01.04.2015, became a sole proprietorship firm and petitioner No. 2 as the sole proprietor, at L-78, shopping arcade, Hotel Hyatt Regency, Bhikaiji Cama Place, New Delhi. In respect of shop in question, a license agreement along with supplementary agreement both dated 18.02.1992 were executed between erstwhile petitioner/firm and the respondent, which was renewable every five years.
8. According to petitioners in these petitions, on the ground that the internal fittings of shopping arcade were nearly 40 years old and were in urgent need for repair and it was no longer financially profitable to continue with the shopping arcade, the respondent vide notice dated 29.05.2020 revoked the license in respect of shop No. L-79 extn (L-81); L-79, license LARB. 73 and L-78 w.e.f. 01.06.2020.
9. The petitioners contend that the petitioners were in exclusive possession of the shops in question and the aforesaid notice did not mention any violation of the terms and conditions of the license/lease agreement by petitioners. Further submitted that petitioners had right to carry on
The court emphasized the unbiased adjudication of disputes between the parties and rejected the contention of the petitioners to appoint an arbitrator of their choice, in line with the legal principl....
Arbitration - Appointment of Arbitrator - Arbitration agreement between the parties and invocation of arbitration are not disputed by respondents - Till Arbitrator enters into reference, respondent s....
The court established that both parties must mutually agree on the appointment of an arbitrator to ensure unbiased adjudication and upheld the arbitration agreement between the parties.
The court appointed an arbitrator to resolve disputes arising from license agreements, emphasizing prior rulings and compliance with statutory requirements.
Arbitration - Appointment of Arbitrator - Former Secretary, department of Law and Justice is appointed sole Arbitrator to adjudicate dispute between parties in these petitions.
The court affirmed the appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, for disputes arising from an uncontested License Agreement.
Court found termination of License Agreement accepted by respondent, resolving disputes without further arbitration.
The court confirmed the right to appoint an arbitrator due to the respondent's non-compliance with the terms of the agreement, affirming that the disputes were arbitrable.
The acceptance of the termination of the License Agreement and the agreement to hand over possession rendered the petition moot, leading to its disposal.
The court can appoint an Arbitrator when parties fail to mutually agree, as per agreement provisions and arbitration law.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.