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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Ultra Mega Power Pvt. Ltd. - Appellant
Versus
HBL Power Systems Limited - Respondent
Arb.P. 338 of 2021 & I.A. 3535 of 2021 (for condonation of delay of 54 days in re-filing)
Decided On : 15-11-2021




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 arbitrator.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11(6) - Petition for appointment of an arbitrator - The court referred the disputes to the Delhi International Arbitration Centre, allowing the appointment of an arbitrator without determining the merits of the case - The arbitrator is to follow the DIAC's rules and fee schedule. (Paras 1-7)

(B) Legal principle of arbitration - The court acknowledges the importance of referring disputes to arbitration and emphasizes that all questions of fact and law will remain open for determination by the arbitrator. (Para 3)

Facts of the case:
The appellant sought the appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, for a dispute with the respondent. The respondent's counsel expressed no objection to the arbitration referral.

Findings of Court:
The court ordered the referral of the disputes to the Delhi International Arbitration Centre for arbitration following its rules.

Issues: The primary issue involved was the appointment of an arbitrator to resolve the disputes between the parties.

Ratio Decidendi: The court decided to refer the disputes for arbitration based on the parties' agreement, emphasizing the non-interference in the merits of the dispute at this stage.

Result: Petition disposed of and disputes referred to arbitration.

Table of Content
1. petition for arbitration filed under section 11(6) (Para 1)
2. respondent's agreement to arbitration (Para 2)
3. disputes referred to diac for arbitration (Para 3 , 4 , 5 , 6)
4. disposition of pending applications (Para 7)

ORDER (Oral)

C. Hari Shankar, J.

ARB.P. 338/2021 & I.A. 3535/2021 (for condonation of delay of 54 days in re-filing)

1. This petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 ("1996 Act") seeking appointment of an arbitrator to arbitrate on the dispute between the parties.

2. Mr. Krishna Kumar Singh, learned Counsel for the respondent, has no objection if the dispute is referred to arbitration without prejudice to all his contentions in response to the submissions of the petitioner.

3. Accordingly, without entering into the merits of the disputes, and keeping all questions of fact and law open for decision by the learned Arbitrator, this petition is disposed of by referring the disputes between the parties to the Delhi International Arbitration Centre (DIAC), which would appoint a suitable arbitrator to arbitrate thereon.

4. The arbitration shall take place under the aegis of the DIAC and would abide by its rules and regulations.

5. The arbitrator would also be entitled to charge fees in accordance with the schedule of fees stipulated by the DIAC.

6. The arbitrator would furnish the requisite disclosure under Section 12(2) of the 1996 Act within a week of entering on reference.

7. All pending applications are also disposed of in the aforesaid terms.

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