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IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
Thapar Builders Private Limited - Appellant
Versus
Thomas and Company Pvt. Ltd. - Respondent
O.M.P. (T) (COMM.) 72 of 2021
Decided On : 31-08-2021




The court ruled that a substituted Arbitrator may be appointed under Section 15(2) of the Arbitration and Conciliation Act, emphasizing the need for the Arbitrator's impartiality and independence.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 15(2) - Appointment of Arbitrator - Petition filed for appointment of a substituted sole Arbitrator after the original Arbitrator recused himself due to conflict of interest. Court appointed Justice (Retd.) Mool Chand Garg as Sole Arbitrator, emphasizing compliance with Section 12 regarding the Arbitrator's impartiality and independence. (Paras 1-8)

(B) Arbitration Procedure - The court highlighted the procedural aspects related to the appointment of an Arbitrator and stressed that all issues are to remain open for adjudication. (Paras 6 and 8)

Facts of the case:
The petitioner sought a substituted Sole Arbitrator due to the original Arbitrator’s inability to act because of a conflict of interest, affirmed by the response of the respondent's counsel.

Findings of Court:
The court accepted the petition and appointed a new Sole Arbitrator, ensuring compliance with relevant provisions of the Arbitration Act.

Issues: The primary issue was the appointment of a new Arbitrator following the original Arbitrator’s recusal due to a potential conflict of interest.

Ratio Decidendi: The court ruled that a substituted Arbitrator may be appointed as per Section 15(2) of the Arbitration and Conciliation Act, highlighting the importance of impartiality and independence of the Arbitrator.

Result: Petition disposed of.

Table of Content
1. appointment of arbitrator following recusal. (Para 1 , 2 , 3)
2. submission for a substituted arbitrator. (Para 4 , 5)
3. details of the new arbitrator's appointment. (Para 6 , 7 , 8)
4. disposal of the petition. (Para 9 , 10)

JUDGMENT (Oral)

1. The present petition has been filed by the petitioner under Section 15(2) of the Arbitration and Conciliation Act, 1996 seeking appointment of a Sole Arbitrator under substitution.

2. Learned counsel for petitioner submits that vide order and judgment dated 17.02.2021, this Court appointed Justice (Retd.) G.S. Sistani sole Arbitrator to adjudicate the dispute that had arisen between the parties.

3. Thereafter, vide email dated 25.03.2021 the sole Arbitrator informed the counsel for the petitioner and respondent about his inability to act as an Arbitrator, as his son had previously appeared for one of the parties.

4. Learned counsel for petitioner submits that a substituted Arbitrator may be appointed in terms of Order and Judgment dated 17.02.2021, as Justice (Retd.) G.S. Sistani has recused and conveyed his inability to act as an Arbitrator.

5. The aforesaid submission is affirmed by learned counsel for respondent who submits that there is no objection to appointment of substituted Arbitrator.

6. Accordingly, Justice (Retd.) Mool Chand Garg (Mobile: 9899337979) is appointed sole Arbitrator to adjudicate the disputes between the parties.

7. The arbitration shall be conducted under the Delhi International Arbitration Centre (DIAC). The fee of the Arbitrator shall be in accordance with the schedule of fees prescribed under the Delhi International Arbitration Centre (DIAC) (Internal Management) Rules and Delhi International Arbitration Centre (Administrative Cost and Arbitrators' Fees) Rules, 2018.

8. The learned Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act, 1996 before commencing the arbitration. Needless to say, all issues are left open for adjudication and consideration by the learned Arbitrator.

9. A copy of this order be sent to the learned Arbitrator for information.

10. The petition is accordingly disposed of.

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