IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
M/s Garg Builders Through Shri Saurabh Garg Partner - Appellant
Versus
Sidculconcor Infra Company Limited Scicl - Respondent
Arbitration Petition No. 152 of 2022
Decided On : 08-02-2022
arbitration - appointment of sole arbitrator - The court allowed the petition and appointed an arbitrator to adjudicate the disputes between the parties based on the arbitration clause in the agreement.
Fact of the Case:
The petitioner sought appointment of a sole arbitrator to adjudicate disputes arising from agreements with the respondent for construction work.
Finding of the Court:
The court found that the disputes between the parties were arbitrable and appointed an arbitrator to resolve the issues.
Issues: The issues revolved around the invocation of arbitration, objections raised by the respondent, and the admissibility of the claims.
Ratio Decidendi: The court relied on the arbitration clause in the agreement and the respondent's concession that the disputes were arbitrable to appoint an arbitrator.
Final Decision: The court allowed the petition and appointed an arbitrator to adjudicate the disputes between the parties.
JUDGMENT
Suresh Kumar Kait, J. - The hearing has been conducted through video conferencing.
I.a. 2109/2022 (exemption)
1. allowed, with direction to file requisite original documents, i.e. agreement and other documents, as well as notarised/attested affidavit within six weeks.
2. application is disposed of.
aRB.P. 152/2022
3. The present petition has been filed by the petitioner seeking appointment of sole arbitrator to adjudicate the disputes inter-se the parties.
4. as per the averments made in the present petition, the petitioner entered into agreements dated 31.03.2015 and 15.04.2015 with the respondent for the work of C/o administrative Building, Business facilities, public utilities, transporters office, station building etc. including allied works at MMLP Pantnagar Uttarakhand for contractual tendered amount of Rs.13,35,74,774/-. The date of commencement & completion of work was 31.03.2015 and 12.03.2016, which was respectively stipulated in the award Letter. The work was duly completed on 10.08.2017. The value on the date of completion of work was estimated at Rs.16,64,44,946/- against which net payment of Rs.15,11,91,095/- was released. However, despite repeated requests, an amount of Rs.44,91,359/-, is pending towards service tax refund, security deposit, which was not released by respondents.
5. Learned counsel for the petitioner has submitted the arbitration clause of agreement provides that the CMD of the respondent shall either adjudicate the disputes themselves or otherwise appoint an independent arbitrator. accordingly, the petitioner on 05.02.2018 requested the CMD of the respondent to act in terms of the arbitration clause. Subsequently, the petitioner filed a petition aRB. P. 338/2019 on the basis of invocation notice dated 05.02.2019 which was served upon the CMD of Container Corporation of India Ltd. (CONCUR) because the previous agreement dated 31.03.2015 was entered with CONCUR. The said petition was disposed of while granting liberty to the petitioner to approach this Court. Thereafter, petitioner again approached this Court with a new petition, i.e. aRB.P. 386/2019 on the basis of the same invocation notice dated 05.02.2019. Respondent filed a reply and took objection to the extent that the petitioner had not served any notice on the respondent for invocation of arbitration in addition to other objections. Therefore, the same was disposed of as withdrawn by the petitioner with liberty to pursue appropriate remedy as per law.
6. accordingly, petitioner again issued a notice dated 21.10.2019 invoking the arbitration and filed another petition, i.e. aRB.P. 832/2019, to which the respondent filed reply and took a specific objection that the respondent has not received any such notice. Further a plea was taken by the respondent that the petitioner should have waited for 120 days for the respondent to take a decision on its representation (notice dated 21.10.2019) before filing aRB.P. 832/2019 and therefore, the same is premature. accordingly, the said petition was dismissed as withdrawn with liberty to file a fresh petition if the disputes are not resolved. Thereafter, on 07.01.2022 the respondent replied to the notice of the petitioner dated 21.10.2019 and denied the admissibility of the claims. Hence, the present petition has been filed.
7. During the course of hearing, learned counsel appearing on behalf of the respondent has not opposed the present petition and submits that the claims raised in the present petition are disputed, however, fairly conceded that the disputes inter se parties are arbitrable.
8. accordingly, the present petition is allowed and Mr. N. S. Bajwa, advocate (Mobile: 9811117745) is appointed as arbitrator in this case.
9. The fee of the learned arbitrator shall be governed by the Fourth Schedule of the arbitration and Conciliation act, 1996.
10. The learned arbitrator shall ensure compliance of Section 12 of arbitration and Conciliation act, 1996 before commencing the arbitration.
11. The pres
The court has the authority to appoint an arbitrator to resolve disputes based on the arbitration clause in the agreement and the arbitrability of the disputes.
Disputes arising from contractual agreements are subject to arbitration as per the Arbitration and Conciliation Act, 1996 when both parties concede to arbitrability.
The main legal point established in the judgment is the appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 to adjudicate the disputes between the parti....
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 applied the provisions of the Arbitration and Conciliation Act, 1996 to appoint a sole arbitrator and ensure compliance before commencing the arbitration.
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.
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.
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 has the authority to appoint a sole Arbitrator in accordance with the Arbitration Clause forming a part of the Contract.
Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act, 1996 before commencing the arbitration.
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.