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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Design Associates Inc., A Partnership Firm - Appellant
Versus
Employee State Insurance Corporation - Respondent
Arb.P. 573 of 2021 & I.A. 7786 of 2021 and Arb.P. 574 of 2021 & I.A. 7792 of 2021
Decided On : 17-11-2021




The court facilitated arbitration by appointing an arbitrator, emphasizing that all rights and arguments remain open for determination by the Arbitral Tribunal.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 12(2) - Two petitions referred to arbitration - Court appointed Hon'ble Mr. Justice V.K. Shali as arbitrator to resolve disputes while keeping all contentions open for the Arbitral Tribunal. The combined claim is approximately Rs.12 crores. (Paras 1-4)

(B) Maintainability and arbitrability - Parties agreed to refer disputes to arbitration, maintaining all arguments open, thus avoiding entering into the facts of the case. (Paras 1-2)

Facts of the case:
The disputes in two petitions were referred for arbitration as both parties agreed, with the total claim reportedly in the region of Rs.12 crores.

Findings of Court:
The Court appointed a former judge as the arbitrator, allowing fees per the Arbitration & Conciliation Act, and required disclosure under Section 12(2) to be filed.

Issues: The main issues addressed were the agreement of both parties to arbitration, the appointment of the arbitrator, and the maintainability and arbitrability of the claims.

Ratio Decidendi: The court determined that arbitration was an appropriate dispute resolution method, allowing the parties to maintain their rights and positions before the arbitrator without delving into the case’s facts.

Result: Petitions along with pending applications disposed of as directed.

Table of Content
1. parties agree to arbitration (Para 1)
2. no need for facts; claim amount stated (Para 2 , 3)
3. arbitrator appointed with guidelines (Para 4)
4. petitions disposed of as per order (Para 5)

ORDER (Oral)

1. Learned Senior Counsel for parties are, ad idem, agreeable to the disputes in these two petitions being referred to an arbitrator appointed by the Court, keeping all contentions including maintainability, arbitrability and merits of the dispute open for arguments before the learned Arbitral Tribunal.

2. In view thereof, the necessity of entering into the facts of the case is obviated.

3. The total claim in both these matters put together is stated to be in the region of about Rs.12 crores.

4. Accordingly, the Court appoints Hon'ble Mr. Justice V.K. Shali (Retd.), a former judge of this Court [Phone No.971749500; e-mail ID: vkshali54@gmail.com], as the arbitrator to arbitrate on the dispute between the parties. The learned arbitrator shall be entitled to charge fees in accordance with the Fourth Schedule to the Arbitration & Conciliation Act, 1996. The learned Arbitrator would file the requisite disclosure under Section 12(2) of the 1996 Act within a week of entering on reference. All rights and contentions of the parties are kept open for agitation before the learned arbitrator.

5. Accordingly, these petitions along with pending applications stand disposed of in the aforesaid terms.

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