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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Cyfuture India Private Limited - Appellant
Versus
Futuretimes Technology India Private Limited - Respondent
Arb.P. 145 of 2021
Decided On : 15-07-2021




Appointment of an arbitrator in instances where the respondent does not object to arbitration is valid under the Arbitration and Conciliation Act, emphasizing the importance of efficient dispute resolution.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 11(5) and 11(6) - Petition for appointment of arbitrator in a dispute not objected to by respondent - Governing law and arbitration clause agreed, specifying New Delhi jurisdiction - Notice invoking arbitration sent but not served; 30 days elapsed - Court appoints arbitrator for dispute of approximately Rs.2.12 crores plus interest. (Paras 1-6)

(B) Arbitrator's appointment - The court directed the appointed arbitrator to file requisite disclosure under Section 12(2) of the 1996 Act and to charge fees as per the Fourth Schedule. (Paras 6-8)

(C)

Issues: Mainly, whether the appointment of an arbitrator was warranted given the respondent’s non-opposition and the failure to serve notice. (Para 2)

(D)

Findings of Court:
The court found no objection from the respondent for arbitration and proceeded to appoint an arbitrator accordingly. (Paras 1-6) (E)

Ratio Decidendi: The court maintained that when both parties do not oppose the appointment of an arbitrator, it is appropriate to proceed with such appointment to resolve disputes amicably as intended in arbitration agreements. (Paras 5-6) (F)

Result: Petition allowed and disposed of.

ORDER (Oral)

(Video-Conferencing)

C. Hari Shankar, J.

ARB.P. 145/2021

1. This is a petition under Sections 11(5) and 11(6) of the Arbitration and Conciliation Act, 1996 ("1996 Act" for short), for appointment of an arbitrator to arbitrate on the disputes between the parties.

2. The dispute, as set out in the petition, is contained in paras 1 to 24 thereof. As the respondent is not objecting to the appointment of an arbitrator to arbitrate on the disputes, this Court is not burdening the order with a recital of the facts.

3. The Arbitration Clause, in the agreement between the parties, reads thus:

    "F. Governing Law & Arbitration

    This LOE and all matters arising out of or related to this LOE shall be governed by the laws of India and courts at New Delhi shall have exclusive jurisdiction over any matter of dispute arising under this LOE.

    All disputes arising in relation to or pertaining to or under this LOE or any part thereof shall be resolved by a sole arbitrator mutually agreed between the parties, in accordance with the provision of the Arbitration & Conciliation Act, 1996 and amendments thereof The seat of Arbitration shall be New Delhi and the language shall be English."

4. Notice invoking arbitration was sent by the petitioner to the respondent on 24th September, 2020, but could not be served. 30 days having elapsed therefrom, the petitioner has moved this Court under Sections 11(5) and 11(6) of the 1996 Act.

5. Ms. Raddhika Khanna, learned Counsel for the respondent, does not oppose reference of the disputes to arbitration. The claim is stated to be in the vicinity of Rs.2.12 crores, apart from interest.

6. Accordingly, this Court appoints Mr. Ravi Kant Chadha, Senior Advocate, as the arbitrator to arbitrate on the disputes between the parties. The contact details of the learned Arbitrator are as under:

    Cell No.: 9811024601

    E-mail ID: chadhaandassociates@rediffmail.com

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

8. The learned Arbitrator shall be entitled to charge fees in accordance with the Fourth Schedule to the 1996 Act.

9. With the aforesaid directions, this petition stands allowed and disposed of.

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