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2023 Supreme(Del) 3293
IN THE HIGH COURT OF DELHI AT NEW DELHI
Jyoti Singh, J.
Guerrilla Infra Solutions Pvt. Ltd. – Appellant
Versus
Merapashu360 Private Limited – Respondent
Arb.P. 677 of 2023
Decided On : 13-07-2023
Mr Diptiman Acharyya, Advocate, for the Petitioner.
Mr. Vaibhav Banerjee and Mr. Abhay Chattopadhyay, Advocates, for the Respondent.
The court has the authority to appoint a sole arbitrator in accordance with the arbitration clause and the provisions of the Arbitration and Conciliation Act, 1996.
Headnote:
Arbitration - Appointment of Sole Arbitrator - The court appointed a sole arbitrator to adjudicate disputes between the parties in accordance with the arbitration clause in the Membership Agreement. The arbitration proceedings were to be conducted under the aegis of Delhi International Arbitration Centre (DIAC) and the fees of the arbitrator were to be fixed in accordance with the Fourth Schedule of the Arbitration and Conciliation Act, 1996.
Fact of the Case:
The present petition sought the appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 to adjudicate disputes arising from a Membership Agreement containing an arbitration clause.
Finding of the Court:
The court, with the consent of the parties, appointed a sole arbitrator to adjudicate the disputes. The arbitration proceedings were to be conducted under the aegis of DIAC and the fees of the arbitrator were to be fixed in accordance with the Fourth Schedule of the 1996 Act.
Issues: Appointment of Sole Arbitrator, Conduct of Arbitration Proceedings, Disclosure by Arbitrator
Ratio Decidendi: The court's decision was influenced by the arbitration clause in the Membership Agreement, the consent of the parties, and the provisions of the Arbitration and Conciliation Act, 1996.
Final Decision: The petition was allowed and disposed of, with the appointment of a sole arbitrator and directions for the conduct of arbitration proceedings.
JUDGMENT
Jyoti Singh, J. (Oral)
CAVEAT 344/2023
1. Mr. Vaibhav Banerjee, learned counsel enters appearance on behalf of the Caveator.
2. Caveat stands discharged.
I.A. 12441/2023 (exemption)
3. Allowed, subject to all just exceptions.
4. Application stands disposed of.
ARB. P. 677/2023
5. Present petition has been preferred under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the `1996 Act') seeking appointment of a sole Arbitrator for adjudication of the disputes which have arisen between the parties in respect of a Membership Agreement executed between the parties on 20.02.2022. The Membership Agreement contains an arbitration clause which is extracted hereunder, for ready reference:
"Clause 27: Governing Law and Dispute Resolution:
Governed by Indian Law. Disputes shall be resolved by arbitration in accordance with the Arbitration and Conciliation Act 1996 at New Delhi only."
6. Issue notice.
7. Mr. Vaibhav Banerjee, learned counsel accepts notice on behalf of the Respondent and fairly submits that Respondent has no objection to a sole Arbitrator being appointed by this Court. Learned counsel however prays that either a retried Additional District Judge may be appointed or the Arbitrator appointed by this Court should conduct the arbitration proceedings under the aegis of Delhi International Arbitration Centre (`DIAC'). Learned counsel for the Petitioner has no objection to the request made by the counsel for the Respondent.
8. Accordingly with the consent of the parties, Ms. Eshna Kumar, Advocate (Mob. No. 9717313618) is appointed as the sole Arbitrator to adjudicate the disputes between the parties. The arbitration proceedings shall be conducted under the aegis of DIAC and the fees of the learned Arbitrator shall be fixed in accordance with Fourth Schedule of the 1996 Act.
9. Before entering upon reference, the learned Arbitrator shall give a disclosure under Section 12 of the 1996 Act. Needless to state that the Court has not expressed any opinion on the merits of the case and all rights and contentions of the parties with respect to their claims/counter claims are left open to be decided by the learned Arbitrator in accordance with law.
10. Copy of this order shall be forwarded the learned Arbitrator and DIAC for information.
11. With the aforesaid directions, the petition is allowed and disposed of.
