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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Oyo Workspaces India Private Limited - Appellant
Versus
Nagabhushan C.R. - Respondent
Arb.P. 463 of 2021
Decided On : 23-08-2021




A court, under sections 11(5) and (6) of the Arbitration and Conciliation Act, is obligated to appoint an arbitrator when a valid arbitration clause exists and the other party does not oppose the petition.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 11(5) and (6) - Petition for appointment of arbitrator based on arbitration clause in agreement - No appearance by the respondent to oppose the petition - Notice was issued for invoking arbitration without any response from the respondent - Dispute referred to Delhi International Arbitration Centre for appointing an arbitrator. (Paras 6-12)

(B) Arbitration Agreement - Validity of arbitration clause in the agreement upheld; disputes to be resolved under the Arbitration and Conciliation Act, 1996. (Paras 8, 12)

Facts of the case:
The petition is filed to appoint an arbitrator as per the arbitration clause in the agreement, which states resolution of disputes governed by Indian law and the Arbitration and Conciliation Act, 1996. Despite notice invoking arbitration, the respondent did not respond or appear.

Findings of Court:
The court found no valid justification for refusing the petitioner's request to refer the dispute to arbitration.

Issues: The main issues include the presence of an arbitration agreement and whether the dispute should be referred to arbitration given the lack of response from the respondent.

Ratio Decidendi: The court reinforced that, under the Arbitration and Conciliation Act, if a party fails to respond to arbitration notice, the dispute should be referred to arbitration as per the agreement.

Result: Petition allowed; dispute referred to DIAC.

Table of Content
1. petitioner served notice; respondent absent. (Para 1 , 2 , 3 , 4)
2. court's analysis on absence of opposition. (Para 5 , 11)
3. appointment of arbitrator sought under arbitration act. (Para 6 , 8 , 9 , 10)
4. dispute referred to delhi international arbitration centre. (Para 12 , 13 , 14)
5. final disposal of petition stated. (Para 15)

ORDER (Oral)

(Video-Conferencing)

1. Notice on this petition was issued on 8th April, 2021. Service thereon has been effected on the respondent.

2. The Registry was directed to contact the respondent telephonically as well as by WhatsApp and intimate the respondent of today's hearing.

3. The office noting by the Registry indicates that it has been done. There is, however, no appearance on behalf of the respondent either at first call or on second call.

4. It appears that the respondent is not interested in opposing the petition.

5. I have, accordingly, heard learned Counsel for the petitioner and proceed to dispose of the matter.

6. The petition, filed under Section 11 (5) and (6) of the Arbitration and Conciliation Act, 1996, seeks appointment of an arbitrator to arbitrate on the dispute between the parties.

7. The substratum of the disputes stands set out in paras 5 to 14 of the petition.

8. The arbitration clause, in the agreement between the parties, reads thus:

    "Governing Law and Dispute Resolution

    Governed by Indian law. Disputes shall be resolved by arbitration in accordance with the Arbitration and Conciliation Act 1996 at New Delhi only."

9. Notice, invoking arbitration, was sent by the petitioner to the respondent on 5th November, 2020.

10. There is, however, no response thereto from the respondent.

11. No case, for refusing the prayer, of the petitioner, to refer the dispute between the parties to arbitration, is made out.

12. Accordingly, the dispute is referred to the Delhi International Arbitration Centre (DIAC) to appoint an arbitrator to arbitrate thereon.

13. The arbitration shall take place under the aegis of the DIAC and as per its rules and regulations.

14. The arbitrator appointed by the DIAC shall also be entitled to charge fees in accordance with the schedule of fees maintained by DIAC or as otherwise fixed by the arbitrator in consultation with the parties.

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

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