SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img



IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
Amazing India Contractors Private Limited - Appellant
Versus
Indian Railway Stations Development Corporation Limited - Respondent
Arb.P. 923 of 2021
Decided On : 20-09-2021




The necessity for mutual agreement in appointing a sole arbitrator is critical to uphold fairness in arbitration processes, emphasizing the exclusivity of choice and impartiality in dispute resolution.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11(6) - Appointment of Sole Arbitrator - Petition filed seeking appointment of an arbitrator following the respondent's unilateral appointment - Court emphasized the exclusivity requirement for appointing a sole arbitrator under the law as determined in Perkins Eastman Architects DPC & Anr. vs. HSCC (India) Ltd. (Para 15).

(B) Contractual Disputes - The parties claim differing interpretations of the dispute resolution mechanism under their agreement - Court ruled against unilateral appointment by the respondent, echoing previous rulings that established the necessity for mutual agreement in appointing an arbitrator (Paras 15-16).

Facts of the case:
The petitioner had submitted a bid for a project with the respondent and claimed terms were unfulfilled due to various delays, including pandemic-related issues. Following a breakdown in negotiations and significant forfeitures, the petitioner sought arbitration after the respondent allegedly acted unilaterally.

Findings of Court:
The petition to appoint a sole arbitrator was allowed, affirming the petitioner's rights and the need for fairness in arbitration proceedings.

Issues: The main issues included the validity of the respondent's unilateral appointment of an arbitrator and the enforcement of contractual dispute resolutions.

Ratio Decidendi: The court ruled that one party's appointment of an arbitrator must not compromise the impartiality of the process, citing established legal precedents.

Result: Petition allowed; a sole arbitrator was appointed to address the dispute.

Table of Content
1. petitioner's request for arbitration based on contractual disputes. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11)
2. unilateral appointment of arbitrator challenged. (Para 12 , 14)
3. court's reasoning aligns with prior decisions on arbitrator appointment. (Para 15 , 16)
4. court's decision to appoint an arbitrator and dispose of the petition. (Para 17 , 18 , 19 , 20 , 21 , 22)

JUDGMENT

Suresh Kumar Kait, J. (Oral)--The hearing has been conducted through video conferencing.

I.A. 12235/2021 (exemption)

1. Allowed subject to all just exceptions.

2. Application is disposed of.

ARB.P. 923/2021 & I.A.12234/2021

3. The present petition has been filed by petitioner seeking appointment of a Sole Arbitrator under the provisions of Section 11(6) of the Arbitration and Conciliation Act, 1996.

4. Petitioner, a private limited company registered under the Companies Act, 1956, claims to be involved in the business of Facilities Management and Infrastructure Management Projects throughout India. Respondent is said to be a Special Purpose vehicle and a Joint Venture company of IRCON International Limited, a Government of India Undertaking, under the Ministry of Railways and Rail Land Development Authority incorporated under the Companies Act, 1956.

5. According to petitioner, on 09.09.2019 the respondent issued Notice Inviting Tender No. IRSD/HQ/TENDER/2019/21/ SC/ Parking issued by the Indian Railway Station Development Corporation for the project "Management of Parking Area at Secunderabad Railway Station Along with Access Control for a period of 3 (Three) years" and petitioner submitted a bid thereto on 30.09.2019. Pursuant thereto, respondent invited petitioner to attend negotiation meeting on 30.10.2019 and after successful negotiations, respondent issued a Letter of Award bearing IRSDC/HQ/TENDER/ 2019/21/SC/Parking dated 08.11.2019 in favour of petitioner for the said project, to which petitioner gave its Letter of Acceptance on 16.11.2019.

6. It is further averred on behalf of petitioner that in terms of aforesaid Letter of Award, petitioner is required to pay annual license fee of Rs.1,70,00,000/-which was duly deposited and also respondent was duly sent "Letter of Acceptance dated 16.11.2019" by the petitioner. Petitioner vide its letter dated 06.12.2019 also communicated the respondent about payment of first quarter of license fee and security deposit and acceptance of the project for period of three years. Further pleaded by petitioner that it sent an e-mail to the respondent informing that petitioner was ready to execute its part of obligation from 17.12.2019. However, despite visit by Director of petitioner from Hyderabad to New Delhi office of respondent on 05.12.2019 and 19.12.2019 for signing the Agreement, however, the agreement could not be signed on the plea of respondent that the format of Agreement was not ready. Once again, Director of the Petitioner visit the respondent's office but he had to return empty hand back to Hyderabad, as authorized representative of respondent was said to be unavailable and the Agreement for the work could not be signed.

7. The respondent vide its communication dated 18.03.2020 asked for present of Director of petitioner for the purpose of signing the Contract Agreement, however, due to Covid 19 pandemic and declaration of Janta Curfew by the Hon'ble Prime Minister from 22.03.2020, none on behalf of petitioner could reach the respondent to sign the Contract Agreement. It is averred on behalf of petitioner that due to Covid pandemic and phrased lockdown, it became difficult for petitioner's representative/Director to reach Delhi to sign the Agreement.

8. Further, it is averred that since petitioner did not hear anything from respondent regarding reopening after the lockdown period was over, the Director of petitioner sent an email dated 25.05.2020 to the respondent and thereafter, re-opened the parking services at Secunderabad Railway Station on 01.06.2020. Petition

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top