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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
K. Construction Company - Appellant
Versus
Govt. of NCT of Delhi - Respondent
Arb.P. 437 of 2021
Decided On : 18-08-2021




Consent of both parties allows for disputes to be referred to arbitration, reserving all legal questions related to arbitrability and claims for later determination.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11 - Reference of disputes to arbitration - Petition filed for resolution of disputes between parties - Both parties consented to refer the matter to the Delhi International Arbitration Centre (DIAC) for appointment of arbitrator - All questions of facts, law and arbitrability reserved - Arbitrator to make requisite disclosures within a week. (Paras 1-5)

Facts of the case:
Dispute regarding arbitration agreement surfaced between parties, with no objection from the respondents regarding arbitration referral.

Findings of Court:
The matter is referred to arbitration under DIAC, with all claims and objections left open.

Issues: Whether the disputes are arbitrable and under what conditions; the legitimacy of claims.

Ratio Decidendi: The court clarified that disputes are to be referred to arbitration, leaving all pertinent legal questions open and ensuring a structured process through the DIAC.

Result: Petition disposed of in terms of the order.

Table of Content
1. petition for arbitration under section 11. (Para 1)
2. respondents agree to arbitration. (Para 2)
3. overview and consensus for arbitration process. (Para 3 , 4)
4. referral for arbitration with related procedures. (Para 5)
5. disposal of the petition. (Para 6)

ORDER (ORAL)

(Video-Conferencing)

1. This is a petition under Section 11 of the Arbitration and Conciliation Act, 1996 ("the 1996 Act"), for reference of the dispute between the parties to arbitration.

2. Mr. Archit Krishna, learned Counsel for the respondents submits that the respondents have no objection to the disputes being referred to arbitration.

3. It is not necessary, in the circumstances, to burden this order with the recital of the facts of the case. Suffice it to state that the substratum of the facts, relating to the disputes between the parties, stand set out in exhaustive detail in the petition.

4. Learned Counsel for the parties are agreeable to the matter being referred to the Delhi International Arbitration Centre (DIAC), which could appoint a suitable arbitrator to arbitrate thereon.

5. Leaving all questions of facts and law open including the question of arbitratibility of the claim, limitation and all other issues, and without expressing any opinion on the legitimacy of the petitioner's claims or the right of the respondents to object thereto, the disputes stand referred to arbitration under the aegis of the DIAC. The arbitrator shall submit the requisite disclosure under Section 12(2) of the 1996 Act within a week of entering on reference. The arbitration would be conducted as per the rules and regulations of the DIAC and the arbitrator would be entitled to fees as per the schedule of fees maintained by the DIAC or as otherwise agreed in consultation with the parties.

6. The petition stands disposed of in the aforesaid terms.

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