IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
Inderjit Mehta Constructions Pvt. Ltd. - Appellant
Versus
Union of India - Respondent
Arb.P. 899 of 2021
Decided On : 07-12-2021
| Table of Content |
|---|
| 1. dispute initiation and arbitration process (Para 1 , 2 , 3 , 4 , 5) |
| 2. appointment of substituted arbitrator (Para 6 , 7) |
| 3. appointment and fee governance of arbitrator (Para 8 , 9 , 10) |
| 4. disposition of petition and order compliance (Para 11 , 12) |
1. The present petition has been filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator to adjudicate the disputes with respondents.
2. Petitioner is a private limited company registered under the Companies Act, 1956 and is in the business of construction.
3. Respondent Nos.1 and 2 are State under Article 12 of the Constitution of India and are department of UOI under the Ministry of Defence respondent No.1 is Accepting Officer of the subject Contract and respondent No.2 is the Appointing Authority of Arbitrator.
4. As per the averments made in the present petition, petitioner and respondent No.1 had entered into a contract for Completion of Balance Work for Construction of Dwelling Units including Allied Services for Officers, JCOs/OR's at Kirkee bearing C.A. NO. DGMAP/PHASE-II/PKG-23/A/R&C/04 of 2015-2016. After completion of the work, certain disputes arose and in respect to the same, a notice dated 22.06.2019 invoking arbitration was issued by the petitioner to DGMAP vide letter dated 22.06.2019 but no response was received from the respondents. Again a letter dated 27.07.2019 was issued to respondent No.2 for appointment of arbitrator and the same was received by the respondent No.2 on 30.07.2019. However, despite these requests, respondent No.2 failed to appoint any Arbitrator.
5. Pertinently, petitioner had thereafter approached this Court seeking appointment of Arbitrator [Arbitration Petition No.691 of 2019] and vide order dated 24.01.2020, this Court had appointed Mr. K.B Rai, former Chief Engineer, Punjab (PWD) as Arbitrator. It was further directed by this Court that Arbitration shall be conducted under the aegis of DIAC. However, the arbitral proceedings couldn't be completed, as the learned Arbitrator expired on 04.05.2021.
6. Learned counsel for petitioner submits that a substituted Arbitrator may be appointed to adjudicate the dispute between the parties and prays that the substituted Arbitrator may not be appointed through DIAC.
7. Learned CGSC appearing on behalf of respondent submits that he has no objection to the appointment of sole Arbitrator by this Court.
8. In view of the above, the present petition is allowed. Accordingly, Mr. Justice (Retd.) Vikramjit Sen (Mobile: 8447333366) is appointed sole Arbitrator to adjudicate the dispute between the parties from the stage where it was left by the earlier Arbitrator.
9. The fee of the learned Arbitrator shall be governed by the Fourth Schedule of the Arbitration and Conciliation Act, 1996.
10. The learned Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act, 1996 before commencing the arbitration.
11. The present petition stands disposed of accordingly.
12. A copy of this order be sent to the learned Arbitrator for information.
Court has the discretion to appoint a new Arbitrator to continue unresolved arbitration proceedings, affirming continuity even after the previous Arbitrator's death.
The court has the authority to appoint a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 when the parties fail to agree on the appointment.
A party cannot appoint an arbitrator who has an interest in the dispute's outcome, ensuring impartiality in arbitration proceedings.
The necessity to appoint a new Arbitrator is confirmed under Sections 14 and 15 of the Arbitration and Conciliation Act, recognizing the continuation of the arbitration process post-demise of the ori....
The party with the right to appoint a sole arbitrator should not have the power to appoint a sole arbitrator when they have an interest in the outcome of the dispute.
In the event of the demise of the sole Arbitrator, a new Arbitrator can be appointed to continue the arbitration proceedings in accordance with Sections 14 & 15 of the Arbitration and Conciliation Ac....
The court's decision emphasized the arbitrability of disputes and the appointment of a sole arbitrator under the Arbitration and Conciliation Act, 1996.
The court's authority to appoint an arbitrator in cases where the parties are unable to agree, in accordance with the law laid down by the Supreme Court and the provisions of the Arbitration & Concil....
The court has jurisdiction to appoint an arbitrator when parties cannot agree, reaffirming the necessity to comply with provisions of the Arbitration and Conciliation Act, 1996.
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