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DINESH KUMAR SHARMA
Railtech Infraventure Pvt. Ltd. – Appellant
Versus
Rail Land Development Authority – Respondent
JUDGMENT
Dinesh Kumar Sharma, J. - The present petition has been filed under Section 11(6) of the Arbitration and Conciliation Act (hereinafter referred to as the "A&C Act"), 1996 for the appointment of a sole arbitrator.
2. Briefly stated the facts of the case are that the petitioner in response to a tender floated by the respondent for Lease for Residential Development on Railway land in Gata No.26 at Jhusi Land Plot, Prayagraj under Varanasi Division, deposited bid security of Rs.1 crore along with its bid as per terms of the Bid documents. Subsequently, the bid of the petitioner was accepted by the respondent and a Letter of Acceptance (hereinafter referred to as "LOA") dated 29.07.2022 was issued. The respondent informed the petitioner that the petitioner company's eligibility proposal and financial proposal opened on 17.06.2022 and 29.07.2022 respectively and the same has been accepted at the offered value of Rs.79,40,00,001/- (Rupees Seventy Nine Crore Forty Lakh and One Only) towards Lease Premium with respect to the land for "Grant for Residential Development on Railway Land approx area 70606 sq. mtr at Jhusi Land Plot, Prayagraj under Varanasi Division of NER (U.P.) for 99
The court's jurisdiction under Section 11 of the A&C Act is limited to determining the existence of an agreement with an arbitration clause and the presence of arbitral disputes.
The court affirmed that the inquiry under Section 11(6) of the Arbitration Act is restricted to the existence of an arbitration agreement, allowing disputes to proceed to arbitration without mandator....
The main legal point established is that for a dispute to be referred to an arbitrator under Section 11(6) of the Arbitration Act, it must arise from the agreement and be arbitrable in nature.
The relief sought under Section 9 of the Arbitration Act must be in the nature of interim measures to protect the subject matter of the arbitration and cannot extend to permanent injunctions.
A conditional Letter of Acceptance does not create a binding contract or arbitration agreement if its conditions remain unfulfilled.
The arbitration agreement binds all parties, including non-signatories, and disputes must be referred to arbitration despite objections on limitation and jurisdiction.
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