IN THE HIGH COURT OF DELHI AT NEW DELHI
Sanjeev Sachdeva, J.
JVL Electronics, Thanjavur - Appellant
Versus
Samsung India Electronics Pvt. Ltd. - Respondent
FAO 144/2021
Decided On : 19-07-2021
Arbitration & Conciliation Act, 1996 - Section 9 - Dismissal of application seeking stay of termination letter and permission to continue as dealer - Appellant seeks amendment of prayer clause due to subsequent events - Respondent offers payment in full and final settlement of claims - Appellant accepts payment without prejudice to further claims - Parties referred to mediation - Appeal disposed with direction for payment and mediation
Fact of the Case:
The appellant sought stay of a termination letter and permission to continue as the dealer of the respondent. Subsequent events led to the respondent offering a payment in full and final settlement of claims. The appellant sought amendment of the prayer clause and accepted the payment without prejudice to further claims. The parties were referred to mediation.
Finding of the Court:
The court directed the respondent to pay a sum of Rs. 7,48,262.27 within four weeks, without prejudice to the rights and contentions of the parties. The parties were also referred to mediation, with the option to avail of their remedies before appropriate forums if mediation was not successful.
Issues: Dismissal of application under Section 9 of the Arbitration & Conciliation Act, 1996, subsequent events leading to amendment of prayer clause, acceptance of payment in full and final settlement of claims, and referral to mediation.
Ratio Decidendi: The court considered the subsequent events and the acceptance of payment without prejudice to further claims, leading to the direction for payment and referral to mediation.
Final Decision: The appeal was disposed of with a direction for payment and referral to mediation, with the option for parties to avail of their remedies before appropriate forums if mediation was not successful.
JUDGMENT
Sanjeev Sachdeva, J.:--
CM Appln. 21047/2021 (Exemption)
Allowed, subject to all just exceptions.
FAO 144/2021 & CM APPLN. 21045-46/2021
1. The hearing was conducted through video conferencing.
2. Appellant impugns judgment dated 12.02.2021 whereby the application of the appellant under Section 9 of the Arbitration & Conciliation Act, 1996 has been dismissed.
3. Appellant had sought stay of the termination letter dated 24.12.2020 and had sought permission to continue as the dealer of the respondent.
4. Learned counsel for the Appellant submits that during the pendency of these proceedings, subsequent events have occurred whereby the respondent have taken back certain stocks and offered to pay a sum of Rs. 7,40,705.84 by their e-mail dated 17.05.2021 to the appellant in full and final settlement of all his claims. He submits that an application has been filed by the appellant seeking amendment of the prayer clause.
5. Learned counsel for the appellant submits that since the said amount has been admitted by the respondent, respondent be directed to pay the same. He, however, submits that there are other claims of the appellant which would still survive as the said payment would not be as full and final settlement of all claims of the appellant.
6. Learned counsel for the respondent submits that on further reconciliation of the accounts, a sum of Rs. 7,48,262.27 is being offered to the appellant. He submits that said payment is being offered without prejudice to the rights and contentions of the parties and with a view to resolve the disputes. He further submits that in case appellant has any further claim, appellant may agitate the same before the appropriate forum.
7. Learned counsel for the appellant submits that appellant would accept the said amount without prejudice to the rights and contentions and reserving the rights of the appellant to claim his further amount before the appropriate forum.
8. Further, learned counsel for the parties pray that parties may be given liberty of resolving their disputes through mediation and pray that parties be referred to mediation.
9. In view of the above statement, appeal is disposed of with a direction to respondent to pay a sum of Rs. 7,48,262.27 within a period of four weeks from today. It is clarified that this payment would be without prejudice to the rights and contentions of the parties and all rights of the appellant to claim further amount in accordance with law would be reserved and this would be also subject to the rights of the respondent to defend such claims, if any, raised.
10. Further in view of the request of the parties, parties are referred to the Delhi High Court Mediation & Conciliation Centre. Parties shall appear before the mediator through video conferencing on 26.07.2021.
11. It is clarified that in case mediation is not successful, parties may avail of their remedies before appropriate forums.
12. The appeal is disposed of in the above terms.
13. Copy of the order be uploaded on the High Court website and be also forwarded to learned counsels through email by the Court Master.
The court considered the acceptance of payment without prejudice to further claims, and the referral to mediation as a means to resolve the disputes.
Court emphasizes the importance of preserving parties' rights while allowing for settlement negotiations under arbitration law.
The court recognized and gave effect to the full and final settlement between the parties, leading to the satisfaction of the arbitral award and disposal of the appeal.
The court's decision emphasized the importance of adjudicating certain matters through arbitration and the inapplicability of certain contentions for the arbitral proceedings.
A settlement reached between parties renders an arbitral award satisfied, making any appeals regarding the matter infructuous.
The court emphasizes the necessity of arbitration for settling disputes between parties, facilitating fair adjudication and respecting the process under the Arbitration and Conciliation Act, 1996.
The court recognizes and upholds the mutual settlement reached between parties regarding the execution of an arbitral award, directing compliance within a specified timeframe.
The court clarified the impact of the interim award on the final adjudication, the requirement for the Petitioner to deposit the awarded amount, and the allowance for the Petitioner to file an applic....
The judgment emphasizes the limited scope of interference under Section 37 of the Arbitration Act, highlighting the importance of abiding by arbitral awards and the need for commercial parties to hon....
Section 9 of the Arbitration Act only permits interim reliefs; final relief claims must be adjudicated by the Arbitral Tribunal.
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.