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.
Inderjit Mehta Constructions Pvt. Ltd. - Appellant
Versus
Union of India - Respondent
Arb.P. 899 of 2021
Decided On : 07-12-2021




Court has the discretion to appoint a new Arbitrator to continue unresolved arbitration proceedings, affirming continuity even after the previous Arbitrator's death.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11(6) - Petition for appointment of sole Arbitrator due to failure of respondent to appoint after dispute arose from the contract - Petitioner invoked arbitration but received no response, leading to previous court appointment of Arbitrator which could not be completed due to Arbitrator's death. (Paras 1-5)

(B) Judicial Discretion - Court allows appointment of a new Arbitrator in absence of objection from respondent, ensuring continuity of arbitration proceedings. (Paras 6-8)

Facts of the case:
Petitioner, a construction company, had a contract with the respondents (Ministry of Defence) for construction work, disputes arose leading to arbitration requests that went unanswered, necessitating court intervention.

Findings of Court:
Court appointed a new sole Arbitrator to continue the arbitration process from the previous proceedings.

Issues: Whether the court should appoint a substituted Arbitrator after the previous Arbitrator’s death and the procedure following a failed appointment request.

Ratio Decidendi: The court found it appropriate to facilitate ongoing arbitration proceedings by appointing a substituted Arbitrator, following the absence of objection from the respondent.

Result: Petition allowed.

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)

JUDGMENT (Oral)

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.

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