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IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
Sital Dass Jewellers - Appellant
Versus
Asian Hotels (North) Ltd. - Respondent
ARB.P. 661 of 2021, ARB.P. 665 of 2021, ARB.P. 667 of 2021, ARB.P. 668 of 2021, O.M.P.(I) (COMM.) 244 of 2021, O.M.P.(I) (COMM.) 245 of 2021, O.M.P.(I) (COMM.) 248 of 2021 and O.M.P.(I) (COMM.) 249 of 2021
Decided On : 06-08-2021




The court established that both parties must mutually agree on the appointment of an arbitrator to ensure unbiased adjudication and upheld the arbitration agreement between the parties.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11(6) and Section 17 - Petitioners sought appointment of Arbitrators for disputes against common respondent - Past agreements contained arbitration clauses - License agreements were subject to renewal every five years - Respondent attempted to revoke licenses based on internal conditions - Petitioners claim possession and right to continue business - Court emphasized unbiased arbitration and rejected unilateral appointment - Sole Arbitrator appointed. (Paras 1, 10, 18, 19, 22)

(B) Arbitrator appointment - Proper approach requires both parties' consent for unbiased adjudication - Supreme Court reiterated exclusivity in arbitrator appointment and need for impartiality. (Para 19)

Table of Content
1. multiple petitions for arbitrator appointment combined. (Para 1 , 2)
2. factual background of petitioners and agreements. (Para 3 , 4 , 5 , 6 , 7 , 8)
3. arguments regarding possession and arbitration clause. (Para 9 , 10 , 11 , 12)
4. interim arrangement and consideration of both parties. (Para 13 , 14 , 15 , 16)
5. arbitration clause recognition. (Para 17 , 18)
6. final orders and appointment of arbitrator. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26)

JUDGMENT (Oral)

Suresh Kumar Kait, J. The hearing has been conducted through video conferencing.

1. The above captioned first four petitions have been preferred under Section 11(6) of Arbitration and Conciliation Act, 1996 seeking appointment of Arbitrators for adjudication of disputes between the parties.

2. Since the relief sought by the petitioners in these petitions is more or less similar against a common respondent, therefore, with the consent of counsel for the parties, these petitions have been heard together and are being disposed of by this common order.

3. Petitioner No.1 in the above captioned first petition [ARB. P. 661/2021] is a proprietorship firm at L-81, Shopping arcade, Hotel Hyatt Regency, Bhikaiji Cama Place, New Delhi and petitioner No.2 is the proprietor.

4. In the third captioned petition, [ARB. P. 667/2021], petitioner No.1 is a partnership firm and petitioner No.2 is the partner of the firm, who are having their office L-79, Shopping arcade, Hotel Hyatt Regency, Bhikaiji Cama Place, New Delhi.

5. Petitioner No.1/firm in first captioned petition and third captioned petition are similar. According to petitioner firm, on 01.09.1982 a license agreement along with a supplementary agreement was entered between petitioner (previously known as M/s Virender Kumar & Co.) and respondent in respect of shops in question, which was renewable every five years at the option of petitioner. The case of petitioner is that after change of name of petitioner/firm from M/S Virender Kumar & Co. to M/S Sital Dass Sons, an additional space adjacent to shop L-79 viz L-79 Extn. (Renumbered as L-81) (273 sq. ft.) in the same shopping arcade was granted by the respondent to M/S Sital Dass Sons vide supplementary agreement dated 10.08.1984 and the terms of original license agreement dated 01.09.1982 were to be read along with agreement dated 10.08.1984. Vide letter dated 01.01.1992, M/S Sital Dass Sons through its partners informed the respondent that they shall be operating under two different names i.e. M/S Sital Dass Sons represented by Rajendra Kumar Rakyan in shop No. L-79 ( 490 sq. ft.) and the other represented by Mr. Jitendra Rakyan in shop no. L-79 Extn. (Renumbered as L-81)(273 sq. ft.).

6. In the second petition [ARB. P. 665/2021], petitioner No.1 is a partnership firm and petitioner No.2 is the partner of the firm, at L-73, Shopping arcade, Hotel Hyatt Regency, Bhikaiji Cama Place, New Delhi. Petitioner No.1 had entered into a license agreement as well as supplementary agreement, both dated 09.09.1992, with respondent in respect of shop in question, which was renewable every five years at the option of respondent, who had further vide letter dated 0 1.04.1996 transferred the ownership of the said shop from petitioner No.1 to petitioner No.2.

7. In above captioned fourth petition [ARB. P. 668/2021], petitioner No.1/firm who was earlier a partnership firm, by virtue of a dissolution deed dated 01.04.2015, became a sole proprietorship firm and petitioner No.2 as the sole proprietor, at L-78, shopping arcade, Hotel Hyatt Regency, Bhikaiji Cama Place, New Delhi. In respect of shop in question, a license agreement along with supplementary agreement both dated 18.02.1992 were executed between erstwhile petitioner/firm and the respondent, which was renewable every five years.

8. According to petitioners in these petitions, on the ground that the internal fittings of shopping arcade were nearly 40 years old and were in urgent need for repair and it w

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