IN THE HIGH COURT OF DELHI AT NEW DELHI
Sanjeev Sachdeva, J.
Leaseplan India Private Limited - Appellant
Versus
Sagar Tour And Travels & Anr. - Respondents
Arbitration Petition No. 1169 of 2021
Decided On : 13-04-2022
arbitration - lease agreement - The court allowed the petition seeking appointment of an arbitral tribunal in accordance with the lease agreement's arbitration clause. The disputes were referred to the Delhi International Arbitration Centre (DIAC) for arbitration, and the arbitrator would be appointed and entitled to charge fees as per DIAC's rules and regulations.
Fact of the Case:
The petitioner sought appointment of an arbitral tribunal in accordance with the lease agreement's arbitration clause. The respondent was duly served but did not appear, and the court proceeded ex parte.
Finding of the Court:
The court allowed the petition, referring the disputes to the Delhi International Arbitration Centre (DIAC) for arbitration and appointing an arbitrator in accordance with DIAC's rules and regulations.
Issues: Appointment of arbitral tribunal, service of notice, ex parte proceedings
Ratio Decidendi: The court found that the respondent was duly served and proceeded ex parte, leading to the allowance of the petition for appointment of an arbitral tribunal.
Final Decision: The petition was allowed, and the disputes were referred to the Delhi International Arbitration Centre (DIAC) for arbitration, with the appointment of an arbitrator and disclosure requirements under the Arbitration and Conciliation Act, 1996.
JUDGMENT
Sanjeev Sachdeva, J. - Petitioner seeks appointment of an arbitral tribunal in terms of lease agreement dated 24.04.2018 particularly clause 10.2.
2. Clause 10.2 reads as under:-
10.2 (i) arbitration:
all disputes, differences, claims and demands arising under pursuant to or concerning this agreement shall be referred to arbitration in accordance with the provisions of the arbitration & Conciliation act, 1996 or any statutory amendment or re amendment of re-enactment thereof, subject to following rules:
(a) arbitration shall be conducted by a sole arbitrator to be appointed by LPIN.
(b) The language of arbitration shall be English and place or arbitration shall be Delhi.
(c) The respective costs of arbitration shall be borne equally by the parties in the first instance, however, the successful party shall be entitled to the costs of arbitration including legal and recovery costs.
(d) The award shall be speaking award and shall be binding on the parties.
(ii) Jurisdiction:
Subject to 10.2 (i), the law of India shall govern this agreement. The courts in New Delhi shall have exclusive jurisdiction in respect of any matter, claim or dispute arising out of or in any way, relating to this agreement.'
3. Notice in the petition was ordered to be issued on 02.12.2021, returnable on 05.01.2022.
4. On 05.01.2022 the Court has recorded that respondent No.1 was served, however, none appeared for respondent No.1 and service report qua respondent No.2 was awaited. Thereafter fresh notice was directed to be issued to the respondent No.2, returnable for 25.02.2022 wherein again notice was directed to be issued to the respondent No.2, returnable for today.
5. The record shows that respondent No.2 is the sole proprietor of respondent No.1 and respondent No.1 has been served through its sole proprietor.
6. Perusal of the document shows that the summon sent through the process server have been received by one Surinder with a mobile number 8010004647. Though the signatures on the document as well as the returned summons are different, however there is nothing on record to contradict the report of the process server.
7. Further it is observed that the notices sent through registered post have also been delivered by the postal authorities. One of the summons also bears the name of the son of the respondent i.e. ankush who is alleged to have been served on 09.04.2022.
8. I am satisfied that respondent has been duly served.
9. None appears for the respondent despite service. Respondent is proceeded ex parte.
10. accordingly, in view of the above, the petition is allowed.
11. The disputes are referred to the Delhi International arbitration Centre (DIaC), which would appoint an arbitrator to arbitrate the disputes. The arbitration shall take place under the aegis of the DIaC in accordance with its rules and regulations.
12. The arbitrator would be entitled to charge fees in accordance with the schedule of fee stipulated by the DIaC.
13. The arbitrator shall furnish the requisite disclosure under section 12 of the arbitration and Conciliation act, 1996 within one week of entering reference.
14. Petition is disposed of in the above terms.
The court upheld the arbitration clause in the lease agreement and allowed the appointment of an arbitral tribunal in accordance with the provisions of the Arbitration and Conciliation Act, 1996.
The arbitration clause in a lease agreement mandates referral of disputes for arbitration under the Arbitration and Conciliation Act, while proper service of notices is confirmed when no contradictio....
The court referred the lease agreement disputes to arbitration at the Delhi International Arbitration Centre, following the respondent's non-objection to this referral.
The central legal point established in the judgment is the appointment of a Sole Arbitrator in accordance with the arbitration clause, the objection to unilateral appointment, and the agreement betwe....
The court's decision was guided by the existence of the arbitration agreement and the consent of the parties, as well as the provisions of the Arbitration and Conciliation Act, 1996.
The court must appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 when there is mutual consent and an existing arbitration agreement.
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