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IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
Delhi Clean Tech Services Pvt. Ltd. - Appellant
Versus
South Delhi Municipal Corporation - Respondent
O.M.P. (T) (COMM.) 69 of 2021 & I.A. 9188 of 2021
Decided On : 29-07-2021




The court appointed a new Sole Arbitrator following the death of the previous Arbitrator, emphasizing adherence to arbitration procedures per the Arbitration and Conciliation Act, 1996.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 11(6), 15(2), 11(5) and (6) - Petition for appointment of sole Arbitrator - Dispute arose from an agreement for municipal waste management dated 03.06.2011, following the trifurcation of the Municipal Corporation of Delhi - Justice D. Murugesan appointed as Sole Arbitrator after Justice (Retd.) Anil Kumar passed away - Fee governed by Fourth Schedule of the Act. (Paras 1-10)

(B) Arbitrator appointment - The court allowed the petition in light of Clause-12 of the Agreement, which mandates resolution through arbitration - Time for making the Award extended for six months. (Paras 11-12)

(C) Compliance with statutory requirements - The Arbitrator must ensure compliance with Section 12 of the Act before commencing arbitration. (Paras 9)

Table of Content
1. overview of arbitration petition and parties. (Para 1 , 2)
2. dispute over agreement and need for new arbitrator. (Para 5)
3. appointment and governing rules for arbitration. (Para 6 , 7 , 8 , 9 , 10 , 12)
4. extension of time for making the award. (Para 11 , 13)

JUDGMENT (Oral)

The hearing has been conducted through video conferencing.

1. The present petition has been preferred under the provisions of Section 11(6) r/w Sec. 15(2) r/w Sec. 11(5) & (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator in substitution.

2. The petitioner-company, registered under the Companies Act, inter alia is specialized in handling and managing waste. Petitioner-company had entered into an Agreement on 03.06.2011 with erstwhile Municipal Corporation of Delhi (MCD), for sweeping the roads having "Right of way (ROW) 60 feet and 100 feet' by deploying mechanical sweepers. According to petitioner, although the Agreement was with the MCD but the same was later trifurcated and respondent herein i.e. South Delhi Municipal Corporation (SDMC) is the one of the three successors of MCD.

3. Notice issued.

4. Mr. Sandeep Bajaj, Advocate, accepts notice on behalf of respondent-SDMC.

5. The lllcase of petitioner is that some dispute arose with respondent-SDMC with regard to aforesaid Agreement dated 03.06.2011 and petitioner had approached this Court for appointment of an Arbitrator and vide order dated 05.09.2016 [in ARB P. 298/2016], this Court had appointed Justice (Retd.) Anil Kumar as Sole Arbitrator, however, after His demise, a new Arbitrator has to be appointed.

6. In view of pendency of the dispute between the parties with regard to Agreement dated 03.06.2011 and the fact that under Clause-12 thereof the parties shall resolve their dispute through arbitration and the factum of appointment of Justice (Retd.) Anil Kumar as Arbitrator, who has since passed away, this petition is allowed.

7. Accordingly, Justice D. Murugesan, former Chief Justice of Delhi High Court (Mobile: 8826253366) is appointed Sole Arbitrator to adjudicate the dispute between the parties.

8. The fee of the learned Arbitrator shall be governed by the Fourth Schedule of the Arbitration and Conciliation Act, 1996.

9. The learned Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act, 1996 before commencing the arbitration.

10. Needless to say, all issues are left open for agitation by the parties and consideration by the learned Arbitrator.

11. At this stage, learned counsel representing both the sides submit that as per schedule, time for making the Award is expiring on 31.07.2021 and since the prayer of petitioner seeking appointment of Arbitrator is allowed, the time for making the award be also extended for further six months.

12. Accordingly, the time for making the award is extended for a further period of six months commencing from 01.08.2021.

13. With aforesaid directions, the present petition and pending application are accordingly disposed of.

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