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2022 Supreme(Del) 1414

IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
Sw Astik Pipe Ltd - Appellant
Versus
A Von Industries - Respondent
Arbitration Petition No. 90 of 2021
Decided On : 05-01-2022

Advocates appeared:
Sanjay Jain, Advocate, Ishita Jain, Advocate, Akash Srivastava, Advocate

The main legal point established in the judgment is the court's authority to appoint an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, when the respondent deliberately refuses to appear before the court despite being fully aware of the petition.

Headnote:

Arbitration - Appointment of Arbitrator - The court allowed the petition seeking appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996. The respondent had refused to accept notice of the petition, and the court found that the respondent was fully aware of the petition but deliberately chose not to appear before the court. The court appointed Ms. Mukti Bodh as the sole arbitrator to adjudicate the dispute between the parties.

Fact of the Case:

The petitioner filed a petition seeking appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, stating that the respondent had purchased certain goods and owed a total amount of Rs.15,72,850, including interest, to the petitioner. The respondent had refused to accept notice of the petition, and the petitioner sought appointment of an arbitrator to resolve the disputes pending between the parties.

Finding of the Court:

The court found that the respondent was fully aware of the pendency of the petition but deliberately chose not to appear before the court. The court also noted the terms and conditions on the tax invoices, which provided for the resolution of disputes by an arbitrator appointed by the Delhi High Court under the Arbitration and Conciliation Act, 1996.

Issues: The issues involved in the case included the refusal of the respondent to accept notice of the petition, the pending disputes between the parties, and the appointment of an arbitrator to adjudicate the disputes.

Ratio Decidendi: The court's decision was influenced by the respondent's deliberate refusal to appear before the court despite being fully aware of the petition. Additionally, the terms and conditions on the tax invoices supported the appointment of an arbitrator to resolve the disputes.

Final Decision: The court allowed the petition and appointed Ms. Mukti Bodh as the sole arbitrator to adjudicate the dispute between the parties. The fee of the arbitrator would be governed by the Fourth Schedule of the Arbitration and Conciliation Act, 1996, and the arbitrator was required to ensure compliance with Section 12 of the Act before commencing the arbitration.

JUDGMENT

Suresh Kumar Kait, J. - The present petition has been filed under the provisions of Section 11(6) of the arbitration and Conciliation act, 1996 seeking appointment of an arbitrator.

2. The averments made in the present petition are that respondent had purchased HRPO Sheets, C.R. Sheets, C.R. Strips from the petitioner and in pursuance to said business dealing, for the period between 01.04.2018 till 4.12.2019, a total amount of Rs.15,72,850/- including interest @18% per annum till 04.12.2019 for the delayed payments, is due towards respondent. according to petitioner, a legal notice dated 23.12.2019 was sent to the respondent invoking arbitration and for appointment of arbitrator in terms contained in the Purchase Orders-cum-Tax Invoices, however, since respondent did not reply to the aforesaid legal notice, the present petition is filed.

3. During the course of hearing, learned counsel for petitioner has submitted that respondent has refused to accept notice of this petition and thereby, he is evading to resolve the disputes pending between the parties and so, the present petition be allowed and an arbitrator be appointed by this Court.

4. as per office report, notice sent to respondent through ordinary post, dasti, courier, speed post, e-mail, fax and whatsapp is awaited. However, on behalf of petitioner-company, its counsel has placed on record affidavit of service dated 24.12.2021.

5. This Court has carefully gone through the contents of the affidavit of service. In Para-2 thereof it has been mentioned that the process sent to respondent has been received back with the remark 'refused'. In Para-3 it has been mentioned that petitioner has served copy of petition upon the respondent through email and whatsapp. In Para-4 it has been mentioned that Clerk of the counsel had gone to the respondent-company, however, its Director refused to accept the summons. all the above submissions have been supported by necessary annexures. Besides, along with affidavit of service, learned counsel has also placed on record pictures showing the Director of respondent-company talking on phone while the notice of the petition is lying on a table near him. Considering the aforesaid, this Court finds that respondent is fully aware of the pendency of present petition before this Court, however, has deliberately chosen not to appear before this Court.

6. In addition, this Court has also gone through the copy of Tax Invoice dated 16.12.2018, 02.03.2019 and 14.03.2019 placed on record by the petitioner, at the bottom whereof under the Remarks: Terms & Conditions: at point 2 has been mentioned that 'all disputes, touching and/or concerning this bill shall be solely resolved by an arbitrator duly appointed by the Hon'ble Delhi High Court under The arbitration and Conciliation act, 1996, as amended upto date or any repeal thereof. The seat of arbitration shall be Delhi and shall be solely and exclusively subject to Delhi Jurisdiction. The language of arbitration proceedings shall be English.'

7. In view of the above, the present petition is allowed. accordingly, Ms. Mukti Bodh, advocate (Mobile: 9958944220/ 9868028299) is appointed the sole arbitrator to adjudicate the dispute between the parties.

8. The fee of the learned arbitrator shall be governed by the Fourth Schedule of the arbitration and Conciliation act, 1996.

9. The learned arbitrator shall ensure compliance of Section 12 of arbitration and Conciliation act, 1996 before commencing the arbitration.

10. The present petition and pending application, if any, are accordingly disposed of.

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