IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Pink City Expressways Private Limited - Petitioner
Versus
Aaron Security And Services Pvt. - Respondent
W.P.(C) No.731 Of 2023 and CM APPL. No.2800 Of 2023
Decided On : 20-01-2023
Arbitration and Conciliation Act, 1996 - Section 11, 12(1), (5), 16, (3) - DIAC Rules – Constitution of India, 1950 - Article 226, 227 - Sole Arbitrator - Challenging orders - Petitioner filed petition challenging orders passed by ld. Sole Arbitrator – Held, Considering nature of agreements and common conditions of Arbitration Clauses, filing of a common claim petition as also reference to a common sole arbitrator cannot be faulted with - Under such circumstances, even if Petitioner had filed an application seeking recall of order it could not have delayed filing of Statement of Defence inasmuch as non-filing of defence in terms of Rules of DIAC as also Arbitration Act results in delay in arbitral proceedings - In effect reference having been made, even after almost one year has passed, still matter has not proceeded further - It is observed that repeated opportunities have also been given to Petitioner to file Statement of Defence - Record also shows that even arbitral fee has not been deposited - In any event, in terms of decision of this Court in titled ‘Surender Kumar Singhal & Ors. vs Arun Kumar Bhalotia & Ors.’, for Court to interfere with Arbitration Proceedings under Article 226/227, case would need to fall under exceptional circumstances - Petition disposed of.
JUDGMENT :
[Prathiba M. Singh, J.]
1. This hearing has been done through hybrid mode.
2. The Petitioner Company- Pink City Expressways Private Limited has filed the petition challenging the orders dated 6th December, 2022 passed by the ld. Sole Arbitrator appointed under the aegis of the Delhi International Arbitration Centre (DIAC).
3. The Respondent- Aaron Security and Services Pvt. Ltd. had filed an Arbitration Petition 1162/2021 titled ‘M/S Aaron Security and Services Pvt. Ltd v. M/s Pink City Expressway Pvt. Ltd. & Ors.’ under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter ‘the Act’) seeking appointment of an Arbitrator for adjudication of the disputes between the parties in the said arbitration petition.
4. Vide order dated 2nd February, 2022, in the Arbitration Petition, the ld. Single Judge had appointed a Sole Arbitrator in the following terms:
4. Since there is no appearance on behalf of the Respondent despite service; there is no contest in the present petition and the same deserved to be allowed. Accordingly, Hon'ble Mr. Justice Vinod Goel (Retd.), former Judge of this Court [Contact No.: +91 9910384637] is appointed as the common Sole Arbitrator to adjudicate the disputes pertaining to the afore-noted Agreements dated 30th December, 2010 and 19th February, 2011.
5. The parties are directed to appear before the learned Sole Arbitrator as and when notified. This is subject to the learned Arbitrator making necessary disclosure(s) under Section 12(1) of the Act and not being ineligible under Section 12(5) of the Act.
6. The learned Arbitrator will be entitled to charge his fee in terms of the provisions of the Fourth Schedule appended to the Act.
7. The learned Arbitrator shall conduct the arbitration proceedings under the aegis of Delhi International Arbitration Centre [hereinafter "DIAC"] and in accordance with the DIAC Rules.”
5. The matter was referred to the DIAC and Justice Vinod Goel, Former Judge of the Delhi High Court was appointed as the Sole Arbitrator.
6. On 21st May, 2022, the ld. Sole Arbitrator gave time to the Petitioner in the present petition, to file a statement of defence and counter affidavit, if any, within six weeks as requested by the ld. Counsel for the Petitioner. The said order is extracted below:
2. Pursuant to the notice issued by the DIAC, on filing of the statement of claim (SOC) by the claimant, Mr. Pavan N. Prasad, GM (F&A) had joined these proceedings on behalf of the respondents.
3. Mr. Vashisht stated that two agreements were executed between the parties, one for Route Operation Service and another for Ambulance Services and both the agreements are inter- connected and they have raised the bills under both the agreements upon the respondents simultaneously. He submitted that for this reason he had filed a single SOC arising out of both these agreements. He requested that a single case be registered. As requested, the DIAC is directed to de-register case no. 3900.
4. Mr. Pavan sought six weeks' time to file their statement of defence (SOD) and the counter- claim (CC). He stated that they had engaged Sh. D. K. Dwibedi, Advocate, (M: 9437020157) (email id: dkdwibedi.associates@gmail.com) as their counsel to defend them in these proceedings. The SOD and CC, if any, shall be filed by the respondents within six weeks in PDF f
The main legal point established in the judgment is that while a single petition under Section 11 (6) of the Arbitration and Conciliation Act, 1996 may be maintainable when the work of the parties is....
The court emphasized the importance of adopting a simple, unambiguous, and uncomplicated procedure for dispute resolution through arbitration in respect of inter-related contracts with different part....
Section 12 sets out grounds of challenge to person appointed as arbitrator and duty of an arbitrator appointed, to disclose any disqualification he may have.
Arbitral awards may be composite if the issues relate closely, but interest must adhere to contractual terms.
The jurisdiction of an arbitrator is limited to the claims referred to him by the appointing authority; claims not raised before the Dispute Resolution Committee are not arbitrable.
The Arbitral Tribunal has the power to rule on its own jurisdiction, including ruling on any objections with respect to the existence or validity of the arbitration agreement, and for that purpose, a....
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