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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Girdhar Impex Limited - Appellant
Versus
A and A Automobiles Private Limited - Respondent
Arb.P. 233 of 2021
Decided On : 24-03-2021




The court must appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 when there is mutual consent and an existing arbitration agreement.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11 - Petition for intervention of the court to appoint an arbitrator on disputes arising from lease agreement - Respondent concedes existence of arbitration agreement but disputes arbitrability - Court refers disputes to arbitration by retired Chief Justice, B.D. Ahmed - All legal issues remain open for contest. (Paras 1-6)

Findings of Court:
The court emphasized the importance of arbitration and upheld the appointment of a mutually agreed arbitrator to resolve disputes while ensuring all issues were left open for further contestation.

Issues: The main issue was whether the disputes were arbitrable and the appointment of an arbitrator following mutual consent of counsel.

Ratio Decidendi: The court concluded that under Section 11, the appointment of an arbitrator was appropriate given the agreed arbitration clause; mutual consent among lawyers indicated readiness to proceed with arbitration.

Result: Petition disposed of by referring disputes to arbitration.

Table of Content
1. petition for arbitration appointment under arbitration act (Para 1 , 2 , 3)
2. acknowledgment of arbitration agreement and openness to arbitrate (Para 4)
3. agreement on retired judge as arbitrator (Para 5)
4. disposal of petition by referring dispute to arbitration (Para 6 , 7 , 8 , 9)

ORDER (Oral) ARB.P. 233/2021

1. This is a petition under Section 11 of the Arbitration and Conciliation Act, 1996 ("1996 Act"), seeking intervention of the Court to appoint an arbitrator to arbitrate on the disputes between the parties.

2. The substance of the dispute, as set out in the petition, and without prejudice to the rights of the respondent to contest the stand of the petitioner on facts as well as in law, is to be found in paras 4 to 29 of the petition, which, to maintain brevity, are not being reproduced here, as the respondent does not dispute the existence of an arbitration agreement. He, however, prays that the issue of arbitrability of the disputes may be kept alive to be decided by the learned arbitrator, to which learned counsel for the petitioner is agreeale.

3. The provision for resolution of the disputes between the parties is to be found in Clause 8 of the Lease Deed dated 15th November, 2019, which reads thus:

    "ARBITRATION AND JURISDICTION

    8. Any and all disputers) between the parties hereto arising under or in relation to or in connection with this Lease Deed including but not limited to those in respect of its execution, scope, meaning, performance, breach, payments, termination, etc., shall be referred to arbitration of a sole arbitrator to be mutually appointed by the parties. The arbitral award shall be final and binding on the parties. The arbitration proceedings shall be conducted in accordance with the provisions of the Arbitration & Conciliation Act, 1996 or any reenactment or modification thereof for the time being in force. The arbitration proceedings shall be conducted in English. The seat of arbitration shall be at New Delhi alone. The arbitration proceedings shall be under the aegis of the Delhi International Arbitration Centre, New Delhi."

4. Notice, invoking arbitration, was issued by the petitioner on 4th December, 2020. Though the respondent contested the notice by way of a reply, Mr. Sushant Aggarwal, learned counsel for the respondent, fairly concedes the existence of an arbitration agreement between the parties. He, therefore, has no objection to the dispute being referred for arbitration, leaving all issues or facts in law open for contest by the respondent.

5. Learned counsel for the parties are also, ad idem, agreeable for the matter being arbitrated by Hon'ble Mr. Justice B.D. Ahmed, an eminent retired Chief Justice of the High Court of Jammu and Kashmir, who has also adorned the Bench of this Court.

6. In view thereof, this petition is disposed of by referring the disputes between the parties to arbitration by Hon'ble Mr. Justice B.D. Ahmed, (retired). The contact details of the arbitrator are as under:

    Hon'ble Mr. Justice B.D. Ahmed (retired)

    A-14, Friends Colony (West),

    Mathura Road,

    New Delhi-110065

    (Phone) 40453874, 40453874, (mobile) 7042205786

    Email: badardurrez.arb@gmail.com

7. As jointly suggested by learned counsel, the learned arbitrator would be entitled to fees in accordance with the Fourth Schedule to the 1996 Act.

8. The learned arbitrator would also furnish the requisite disclosure under Section 12(2) of the 1996 Act within one week of entering on the reference.

9. With these observations, the petition is disposed of.

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