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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Ashoka Udyog - Appellant
Versus
Managing Director, National Agricultural Co-operative Marketing - Respondent
Arb.P. 358 of 2021 & I.A. 9705 of 2021, I.A. 9706 of 2021 and I.A. 9707 of 2021
Decided On : 22-10-2021
| Table of Content |
|---|
| 1. dispute under arbitration act (Para 1) |
| 2. objection to frivolity of claims (Para 2) |
| 3. legal ground for arbitration referral (Para 3) |
| 4. existence of arbitration agreement (Para 4) |
| 5. details of the arbitration clause (Para 5) |
| 6. agreement to refer disputes to arbitration (Para 6) |
| 7. referral of dispute to diac (Para 7) |
| 8. arbitration governed by diac rules (Para 8) |
| 9. arbitrator fees arrangement (Para 9) |
| 10. disposal of petition per arbitration terms (Para 10) |
1. This is a petition under Section 11 (6) of the Arbitration and Conciliation Act, 1996, seeking reference of the dispute between the parties to arbitration.
2. The only objection, voiced by Mr. Varun Shankar, to oppose the request, is that the claims of the petitioner are frivolous and that there is no merit, whatsoever, in the case sought to be made out by the petitioner.
3. Given the position of the law, as it emanates from the provisions of the 1996 Act, as well as the judgment of the Supreme Court in Vidya Drolia v. Durga Trading Corporation, 2020 SCC OnLine SC 1018, this cannot a ground for me to reject the request for referring the dispute to arbitration.
4. Mr. Varun Shankar, learned Counsel for the respondent, has very fairly acknowledged the existence of an arbitration agreement between the parties.
5. The arbitration clause, in the contract between the parties, reads as under:
"19.2 All or any disputes arising out or touching upon or in relation to the terms of this tender document and process thereof including the interpretation and validity of the terms thereof and the respective rights and obligations of the parties shall be settled amicably by mutual discussion failing which the same shall be settled through arbitration. The arbitration proceedings shall be governed by the Arbitration and Conciliation Act of 1996 (as amended up to date) or any statutory amendments/modifications thereof for the time being in force r/w relevant provisions of Multi State Co-operative Societies Act of 2002. The venue of the arbitration shall be at New Delhi, India and language of arbitration shall be English"
6. Learned counsel for the parties ad idem are agreeable to the dispute being referred for arbitration to the Delhi International Arbitration Centre (DIAC), which would appoint a suitable arbitrator to adjudicate thereon.
7. In view thereof, the dispute between the parties stands referred for arbitration to the Delhi International Arbitration Centre (DIAC), which would appoint a suitable arbitrator to arbitrate on the dispute.
8. The arbitration would take place under the aegis of the DIAC and would abide by its rules and regulations.
9. The arbitrator would also be entitled to fees in accordance with the Schedule of fees maintained by the DIAC or as otherwise agreed between the parties.
10. This petition stands disposed of in the aforesaid terms.
An allegation of frivolity does not preclude the court from referring a dispute to arbitration when an arbitration agreement exists between the parties.
Consent of both parties allows for disputes to be referred to arbitration, reserving all legal questions related to arbitrability and claims for later determination.
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 pet....
The court affirmed the enforceability of arbitration agreements and the necessity to refer disputes for arbitration according to the agreed terms.
The court referred disputes between the parties to arbitration under the Arbitration and Conciliation Act without addressing merits, emphasizing procedural adherence and open questions for the arbitr....
Appointment of an arbitrator in instances where the respondent does not object to arbitration is valid under the Arbitration and Conciliation Act, emphasizing the importance of efficient dispute reso....
The court appointed an arbitrator to resolve disputes as per the arbitration clause in the agreement, emphasizing that the parties are bound to arbitrate their disagreements.
The court directed the appointment of an arbitrator under the Arbitration and Conciliation Act, reaffirming the binding nature of the arbitration clause within the parties' agreement.
The court affirms the validity of the arbitration agreement and appoints an arbitrator as the parties consented to resolve disputes via arbitration.
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