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IN THE HIGH COURT OF DELHI AT NEW DELHI
SACHIN DATTA, J.
Cars24 Services Private Limited through its Authorized Representative Gaurang Saxena - Petitioner
Versus
Ranjeet Singh Jindal and Another - Respondents
ARB.P. No.432 Of 2022 and IA No. 14071 Of 2022
Decided On : 17-04-2023
Arbitration - Appointment of Sole Arbitrator - Lease Dispute
Fact of the Case:
The petitioner filed a petition seeking appointment of a sole arbitrator to adjudicate disputes arising from a Lease Deed. The petitioner sought to unilaterally appoint a Sole Arbitrator, which was objected to by the respondent. After some hearing, respective counsel for the parties agreed to appoint an independent sole arbitrator.
Finding of the Court:
The court appointed Mr. Saurabh Seth as the Sole Arbitrator to adjudicate the disputes between the parties and directed that the arbitration be held under the aegis of and as per the Rules of the Delhi International Arbitration Centre (DIAC). The respondent was entitled to raise preliminary objections as regards jurisdiction/arbitrability/limitation, and all rights and contentions of the parties in relation to the claims/counter-claims were kept open to be decided by the learned Sole Arbitrator on their merits.
Issues: Appointment of Sole Arbitrator, Jurisdiction, Arbitrability, Limitation, Claims/Counter-Claims
Ratio Decidendi: The court's decision was influenced by the arbitration clause incorporated in the Lease Deed, the objection raised by the respondent to the unilateral appointment of a Sole Arbitrator, and the agreement between the parties to appoint an independent sole arbitrator. The court emphasized that the appointment of the Sole Arbitrator and the arbitration process should be in accordance with the Rules of the Delhi International Arbitration Centre (DIAC).
Final Decision: The court appointed Mr. Saurabh Seth as the Sole Arbitrator and directed that the arbitration be held under the aegis of and as per the Rules of the Delhi International Arbitration Centre (DIAC). The respondent was entitled to raise preliminary objections, and all rights and contentions of the parties in relation to the claims/counter-claims were kept open to be decided by the learned Sole Arbitrator on their merits.
JUDGMENT :
(Sachin Datta, J.) :—
IA No. 5385/2022 (Exemption)
1. Allowed, subject to all just exceptions.
2. Application stands disposed of.
IA No. 5386/2022 (delay in re-filing the petition)
3. For the reasons stated in the application, the same is allowed and the delay of 73 days in re-filing the petition is condoned.
4. The application stands disposed of.
ARB.P. 432/2022
5. The present petition filed under Section 11 of the Arbitration & Conciliation Act, 1996 seeks appointment of a sole arbitrator to adjudicate the disputes between the parties.
6. The disputes between the parties have arisen in the context of Lease Deed dated 25.01.2019. The disputes are, inter-alia, on account of alleged unpaid arrears/monetary claims under the aforesaid lease deed.
7. The arbitration clause as incorporated in the aforesaid lease deed dated 25.01.2019, reads as under:—
In case, the said difference and/or dispute and/or any part thereof is not Resolved Jy the parties mutually then the same and/or any part of the same shall be referred to an Arbitration Tribunal consisting of an Arbitrator to be appointed mutually by the Lessee and the Lessor. The decision and award of the said Arbitration Tribunal shall be final and binding upon the parties. The venue shall be New Delhi/Delhi and language shall be English.”
8. The petitioner while seeking to terminate the aforesaid Lease Deed vide Termination Notice dated 20.06.2019, sought to unilaterally appoint a Sole Arbitrator. The same was objected to by the respondent vide communication dated 25.06.2019.
9. After some hearing, respective counsel for the parties are in agreement that an independent sole arbitrator be appointed to adjudicate the disputes between the parties.
10. In the circumstances, Mr. Saurabh Seth, Advocate (Mobile No.: 9811393402) is appointed as the Sole Arbitrator to adjudicate the disputes between the parties.
11. It is further agreed between the parties that the Arbitration be held under the aegis of and as per the Rules of the Delhi International Arbitration Centre (DIAC). It is directed accordingly.
12. The respondent shall be entitled to raise preliminary objections as regards jurisdiction/arbitrability/limitation which shall be decided by the learned sole arbitrator in accordance with law.
13. All rights and contentions of the parties in relation to the claims/counter-claims are kept open, to be decided by the learned Sole Arbitrator on their merits.
14. Needless to say, nothing in this order shall be construed as an expression of opinion of this court on the merits of the dispute between the parties.
15. The present petition stands disposed of in the above terms along with the pending application.
The central legal point established in the judgment is the appointment of a Sole Arbitrator in accordance with the arbitration clause, the objection to unilateral appointment, and the agreement betwe....
The central legal point established is the arbitrability of the dispute as per the terms of the Lease Deed and the court's authority to appoint an arbitrator under Section 11(6)(a) of the Arbitration....
The court may appoint an arbitrator even when one party fails to attempt amicable resolution, as specified in the arbitration clause.
The court emphasized the need for adherence to arbitration clauses in agreements and proceeded to appoint a Sole Arbitrator for the resolution of disputes stemming from a Lease Deed.
The court upheld its jurisdiction to appoint an arbitrator in landlord-tenant disputes based on an arbitration clause, affirming party autonomy in jurisdictional matters despite objections.
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