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IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
Lava International Ltd. - Appellant
Versus
Rally Infra Pvt. Ltd. - Respondent
Arb.P. 934 of 2021
Decided On : 11-01-2022




The court affirmed the appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, for disputes arising from an uncontested License Agreement.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11 - Appointment of Arbitrator - The petitioner sought the appointment of an arbitrator due to the respondent's failure to respond to notices invoking arbitration regarding disputes arising from a License Agreement dated 28.02.2019. Despite disputes, the existence of the License Agreement was not contested and the court found the disputes arbitrable. The petition was allowed and a sole arbitrator was appointed. (Paras 1-6)

(B) Arbitration Agreement - The court emphasized that disputes existing under a valid agreement, which are arbitrable, warrant the appointment of an arbitrator for resolution. (Paras 2 and 5)

Facts of the case:
The petitioner is engaged in trading and manufacturing mobile handsets and let out furniture and assets to the respondent under a License Agreement. After disputes arose, the petitioner invoked arbitration, but the respondent did not respond.

Findings of Court:
The court allowed the petition for the appointment of an arbitrator to resolve the disputes stemming from the License Agreement.

Issues: The primary issue was whether the disputes arising from the License Agreement were arbitrable and if an arbitrator should be appointed.

Ratio Decidendi: The court held that since the existence of the License Agreement was uncontested and the disputes were arbitrable, it was appropriate to appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.

Result: Petition allowed, and an arbitrator was appointed.

Table of Content
1. appointment of arbitrator under arbitration act (Para 1 , 2)
2. disputed claims and arbitrability acknowledged (Para 3 , 5)
3. appearance of respondent's counsel noted (Para 4)
4. appointment of arbitrator and fee regulations (Para 6 , 7 , 8)
5. disposition of petition and applications (Para 9)

JUDGMENT (Oral)

1. The present petition has been under the provisions of Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of Arbitrator for adjudication of disputes with respondent.

2. Petitioner, a limited company, claims to be engaged in the business of trading and manufacturing of mobile handsets and it has let out furniture, fixtures and assets lying in the premises of first floor and third floor B4, Sector 63, Noida, 201301 to the respondent by virtue of License Agreement dated 28.02.2019. The said License Agreement dated 28.02.2019 was initially for a period of 9 years commencing from 01.03.2019. However, during its subsistence, certain disputes arose between the parties and petitioner issued a Notice dated 11.05.2021 to the respondent raising demand for clearance of outstanding dues, which was not replied by the respondent. Thereafter, petitioner claims to have issued another notice 06.08.2021 to the respondent invoking arbitration in terms of Clause-28 of, however, it was also not replied to.

3. During the course of hearing, learned counsel for the petitioner submitted that since respondent failed to invoke arbitration within the time stipulated under the Act, therefore, the present petition has been filed before this Court seeking appointment of Arbitrator License Agreement dated 28.02.2019.

4. Ms. Mehak Gupta, Advocate, has entered appearance on behalf of respondent and submits that she will place on record her vakalatnama during the course of the day.

5. Learned counsel for respondent submits that the claims raised in the present petition are disputed, however, existence of License Agreement dated 28.02.2019 is not disputed nor that the disputes inter se parties are arbitrable. Learned counsel prays that an Arbitrator be appointed by this Court for adjudication of disputes with petitioner.

6. In view of the above, the present petition is allowed. Accordingly, Mr. R.S. Arya, DHJS (Retd.) (Mobile: 9312880188) is appointed the sole Arbitrator to adjudicate the dispute between the parties.

7. The fee of the learned Arbitrator shall be governed by the Fourth Schedule of the Arbitration and Conciliation Act, 1996.

8. The learned Arbitrator shall ensure compliance of Section 12 of Arbitration and Conciliation Act, 1996 before commencing the arbitration.

9. The present petition and pending application, if any, are accordingly disposed of.

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