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IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
M/s Asha Enterprises Pvt. Ltd Through: Shri Love Sharma, Director - Appellant
Versus
Govt.Of NCT Of Delhi - Respondent
Arbitration Petition No. 907 of 2021
Decided On : 09-02-2022
Arbitration - Appointment of Arbitrator - The court appointed an arbitrator to adjudicate the dispute between the parties in accordance with Clause 25 of the agreement, allowing the petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996.
Fact of the Case:
The petitioner filed a petition seeking appointment of an arbitrator for adjudication of disputes with the respondent regarding the delay in the execution of construction work and related disputes.
Finding of the Court:
The court allowed the petition and appointed an arbitrator to adjudicate the dispute between the parties, directing the arbitration to be conducted under the Delhi International Arbitration Centre (DIAC) and ensuring compliance with Section 12 of the Arbitration and Conciliation Act, 1996.
Issues: Disputes arising from delay in construction work, appointment of arbitrator, and compliance with arbitration rules.
Ratio Decidendi: The disputes between the parties were found to be arbitrable, and the court exercised its power under Section 11(6) of the Arbitration and Conciliation Act, 1996 to appoint an arbitrator for resolution.
Final Decision: The court appointed Sugan Lal Meena as the sole arbitrator to adjudicate the dispute between the parties, with the arbitration to be conducted under the Delhi International Arbitration Centre (DIAC) and ensuring compliance with Section 12 of the Arbitration and Conciliation Act, 1996.
JUDGMENT
Suresh Kumar Kait, J. - The present petition has been filed by the petitioner under Section 11 (6) of the arbitration and Conciliation act, 1996 seeking appointment of arbitrator for adjudication of disputes with respondent.
2. Petitioner/company claims to have entered into an agreement with the respondent for construction of additional class rooms in SKV No.2, Sagarpur SPS School Building and other related works. according to the agreement, the work was to commence on 19.02.2016 and completed on 03.07.2016. However, the work could be completed on 14.12.2017.
3. according to petitioner, the delay in execution of work is attributable to the respondent as drawings were not provided in time, there were delays in making decisions at the end of respondent and also there was delay in releasing the payments. Thereby, several disputes arose between the parties, for resolution of which petitioner claims to have written letters dated 24.07.2020 and 19.08.2020 to the respondent, in response to which vide letter dated 22.08.2020, respondent denied all the claims. Further again, petitioner claims to have written various letters to the Chief Engineer of respondent, who vide letter dated 05.08.2021 rejected the request of petitioner for appointment of arbitrator. Hence, the present petition has been filed.
4. During the course of hearing, learned counsel for petitioner has submitted that the disputes between the parties have to be resolved by arbitration in terms of Clause 25 of the agreement and therefore, this Court may appoint an arbitrator for adjudication of disputes with respondent.
5. Learned counsel for respondent has entered appearance on advance notice and he submits that though the claims raised in the present petition are disputed, however, since disputes are arbitrable, this Court may appoint an independent arbitrator.
6. accordingly, the present petition is allowed and Sugan Lal Meena (EX. aDG PWD) (Mobile: 987421661) is appointed the sole arbitrator to adjudicate the dispute between the parties.
7. The arbitration shall be conducted under the Delhi International arbitration Centre (DIaC). The fee of the arbitrator shall be in accordance with the Schedule of Fees prescribed under the Delhi International arbitration Centre (DIaC) (administrative Cost and arbitrators Fees) Rules, 2018.
8. The learned arbitrator shall ensure compliance of Section 12 of arbitration and Conciliation act, 1996 before commencing the arbitration.
9. The present petition and pending application, if any, are accordingly disposed of.
The court's power to appoint an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 and the arbitrability of disputes under the agreement's Clause 25.
Disputes arising under an agreement concerning construction are arbitrable, and a court may appoint an arbitrator as per the Arbitration and Conciliation Act, 1996.
The main legal point established in the judgment is the court's authority to appoint an independent arbitrator for adjudication of disputes based on the arbitration agreement.
The court ruled that disputes under an arbitration agreement are arbitrable and can be resolved through appointed arbitrators, affirming the consent of both parties.
The court applied the provisions of the Arbitration and Conciliation Act, 1996 to appoint a sole arbitrator and ensure compliance before commencing the arbitration.
The court has the authority to appoint a sole Arbitrator in accordance with the Arbitration Clause forming a part of the Contract.
As per Section 11 (13) of the Act now arbitration is required to be decided within 30 days.
The main legal point established is the court's authority to appoint a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 to adjudicate disputes between parties.
The court affirmed that when parties acknowledge disputes in a contractual agreement, an arbitrator must be appointed to resolve these disputes under the Arbitration and Conciliation Act, 1996.
The central legal point established in the judgment is the court's authority to appoint an arbitrator to resolve disputed claims between parties in accordance with Section 11(6) of the Arbitration an....
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