IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
Benjamin Benjamin And Vats - Appellant
Versus
North Delhi Municipal Corporation - Respondent
Arbitration Petition No. 162 of 2022, Miscellaneous Application No. 2185 of 2022
Decided On : 09-02-2022
arbitration - appointment of arbitrator - The court appointed an independent arbitrator to adjudicate the dispute between the parties in accordance with the arbitration agreement.
Fact of the Case:
The petitioner filed a petition seeking appointment of an arbitrator for adjudication of disputes with the respondent, based on an agreement between the parties for consultancy services for a construction project.
Finding of the Court:
The court found that the disputes were arbitrable and appointed an independent arbitrator to adjudicate the dispute between the parties.
Issues: The issues involved the appointment of an arbitrator for adjudication of disputes between the parties based on the arbitration agreement.
Ratio Decidendi: The court's decision was influenced by the existence of the agreement between the parties, the invocation of arbitration by the petitioner, and the consent of both parties that the disputes were arbitrable.
Final Decision: The court appointed an independent arbitrator to adjudicate the dispute between the parties and directed the arbitration to be conducted under the Delhi International Arbitration Centre (DIAC).
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, a proprietorship concern, claims to be engaged in the business of providing services of architects Engineers and Urban Planners. Petitioner claims to have been engaged by the respondent to render consultancy services for a project under which construction of 100 beds was to be done at Balak Ram Hospital at Timarpur. Though the employer of the said work was Public Works Department, however, the work was later transferred to the respondent. For this purpose, an agreement dated 27.03.2003 was entered between the parties, which contained all the terms and conditions as well as details of various activities which were to be carried by the petitioner. The work was to commence on the 30th day of entering into the agreement i.e. 25.04.2003 and was to be completed within 24 months thereof i.e. 24.04.2005.
3. Petitioner claims that during the execution of the work, the architectural drawings of the ward block was modified/revised several times and petitioner raised its claim towards the additional work vide letter 16.05.2019 and 23.07.2019 from the respondent. Even thereafter, petitioner claims to have exchanged several communications with respondent, but to no avail. Hence, vide email dated 18.03.2021 petitioner invoked arbitration in terms of Clause-12 agreement and even the said e-mail was not replied by the respondent. Thus, the present petition has been filed.
4. Learned counsel for respondent, who has entered appearance on advance notice, has disputed the claims raised in the present petition, however, he submits that disputes are arbitrable and this Court may appoint an independent arbitrator for adjudication of disputes between the parties.
5. Pertinently, existence of agreement dated 27.03.2003 executed between the parties is not disputes and also it is not disputed that disputes between the parties have to be resolved in terms of Clause-12 thereof. Invocation of arbitration by petitioner vide email dated 18.03.2021 is also not disputed. Since counsel representing both the sides have consented that the disputes are arbitrable and an independent arbitrator be appointed by this Court, the present petition is allowed.
6. accordingly, Mr. P.C. Ranga, DHJS (Retd.) (Mobile: 9868905228) 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 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'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.
No single party can be permitted to unilaterally appoint the Arbitrator, as it would defeat the purpose of unbiased adjudication of dispute between parties.
The court's decision emphasizes the validity of invoking arbitration in accordance with the arbitration clause of the work order and the importance of compliance with Section 12 of the Arbitration an....
The court has the authority to appoint a sole Arbitrator in accordance with the Arbitration Clause forming a part of the Contract.
Appointment of a sole arbitrator must comply with the provisions of the Arbitration and Conciliation Act, 1996 and should not be in violation of relevant legal precedents.
The court's decision emphasized the appointment of a sole Arbitrator to adjudicate disputes under the Arbitration and Conciliation Act, 1996.
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.