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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Satya Developers Private Ltd. - Appellant
Versus
Cinema Ventures Private Ltd. - Respondent
Arb.P. 492 of 2020
Decided On : 07-04-2021




The court appointed an arbitrator for disputes under the Arbitration and Conciliation Act, affirming the parties' agreement on arbitration without addressing the merits of the controversy.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11(6) - Petition for appointment of an arbitrator - Parties agreed on arbitrability and existence of the arbitration agreement - Amount in dispute is approximately 10 crores - Court appointed a retired Supreme Court Judge as arbitrator - Parties may file claims and counterclaims before the arbitrator. (Paras 1-9)

(B) The court clarifies that this order does not express any opinion on the merits of the dispute and leaves all issues of fact and law open for the Arbitral Tribunal.

Facts of the case:
The petitioner sought the appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, with no objections raised by the respondents regarding arbitrability or the arbitration agreement.

Findings of Court:
The court appointed Hon'ble Mr. Justice A. K. Patnaik as the arbitrator to adjudicate disputes, with specific conditions on fees and disclosure requirements.

Issues: The main issues included the appointment of an arbitrator and the arbitrability of the dispute.

Ratio Decidendi: The court found that since there was no objection to the arbitration’s existence or scope, it was appropriate to appoint an arbitrator and allow claims to be filed.

Result: Petition disposed of.

Table of Content
1. petition for appointment of arbitrator due to dispute. (Para 1 , 2)
2. court's observations on arbitrability and open issues. (Para 3 , 4)
3. appointment of arbitrator and procedural directions. (Para 5 , 6 , 7 , 8 , 9 , 10)

ORDER (Oral)

1. This is a petition under Section 11 (6) of the Arbitration and Conciliation Act, 1996 ("the 1996 Act"), for appointment of an arbitrator.

2. Ms. Sakshi Kakkar, learned counsel for Respondent No. 1 and Dr. Maurya Vijay Chandra, learned counsel for Respondent No. 2, have no objection to the request. The amount in dispute is stated to be in the region of. 10 crores.

3. As there is no dispute regarding the arbitrability of the dispute or the existence of the arbitration agreement, it is not necessary to burden this order with a recital of the controversy set out in the petition. Suffice it to state that this order shall not be treated as any expression of opinion on the merits of the controversy in the petition, or the rival stands of any of the parties before this Court.

4. All issues of facts in law shall remain open for agitation and decision by Arbitral Tribunal as constituted by this Court.

5. In view thereof, this Court appoints Hon'ble Mr Justice A. K. Patnaik, a learned retired Judge of the Supreme Court of India, (Phone No.011-26963011, Mob: 8800381113 (M) Email ID: justice.akpatnaik@gmail.com) as the arbitrator to arbitrate on the disputes between the parties.

6. The arbitrator shall be entitled to charge fees in accordance with the Fourth Schedule of the 1996 Act or as otherwise fixed by him after consultation with the parties.

7. The learned arbitrator may file the requisite disclosure under Section 12(2) of the 1996 Act, within a week of entering on the reference.

8. All parties would be at liberty to file their respective claims/counter claims before the learned arbitrator, in accordance with law and, if so filed, the learned arbitrator would consider and decide the same.

9. This petition stands disposed of in the aforesaid terms.

10. A copy of this order be given dasti under signature of the Court Master to learned counsel for the parties.

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