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IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
Swastik Pipe Ltd. - Appellant
Versus
Jagpal Sharma - Respondent
Arb.P. 101 of 2021
Decided On : 10-12-2021




In the absence of opposition, a court may appoint an arbitrator based on deemed service through electronic means for resolving contractual disputes.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 11(6) and 12 - Petition for appointment of sole Arbitrator - Petitioner claims Rs.29,34,170/- from respondent after dispute arose regarding non-payment for goods received - Notice for arbitration returned, but petitioner demonstrated service through electronic means, which was deemed sufficient - Respondent did not appear. (Paras 1, 2, 5, 6)

(B) Appointment of Arbitrator - The court allowed the petition and appointed a retired judge as sole arbitrator for resolving the dispute, noting lack of opposition from the respondent. (Paras 6, 8)

Facts of the case:
The petitioner, a company, sought an arbitrator after a disagreement regarding non-payment of dues amounting to Rs.29,34,170/-, following an unsuccessful attempt to serve a legal notice.

Findings of Court:
The court ruled in favor of the petitioner, allowing the appointment of an arbitrator and confirmed service via electronic means.

Issues: The main issues involved were the validity of service to the respondent and the necessity for appointing an arbitrator to resolve the payment dispute.

Ratio Decidendi: The court found that sufficient service had been made to the respondent, providing grounds for appointing an arbitrator when a party fails to respond.

Result: Petition allowed; Arbitrator appointed.

Table of Content
1. petitioner seeking appointment of arbitrator (Para 1 , 2)
2. lack of respondent's appearance (Para 3 , 5)
3. awaiting service report (Para 4)
4. appointment of arbitrator and fee structure (Para 6 , 7 , 8)
5. disposal of the petition and order transmission (Para 9 , 10)

JUDGMENT (Oral)

1. The present petition has been filed under Sections 11 (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator to adjudicate the disputes with respondent.

2. As per the averments made by petitioner, petitioner is a company duly incorporated under the Company Act, 1956. Pursuant to business dealings and relations between the parties, respondent was purchasing ERW Precision Tubes and C.R. Strips from the petitioner on a running account basis. A total sum of Rs.29,34,170/- including @18% per annum from 01.04.2019 till 17.02.2020 was due against the goods already received by respondent. Thereafter, dispute arose between the parties. Petitioner sent a legal notice dated 27.02.2020 seeking Demand-cum-Appointment of Arbitrator, however, the same was returned to petitioner with the remarks "item returned as no such person in the address". Therefore, the present petition has been filed.

3. None has appeared on behalf of respondent.

4. As per the report from Registry, service report qua notice to respondent through ordinary, dasti, courier, speed post, e-mail, fax and Whatsapp is awaited.

5. As per the affidavit of service filed by the petitioner, service upon respondent has been effected through Whatsapp as is evident from `blue ticks' on the message sent by learned counsel for petitioner to respondent which is a deemed service. However, despite that, respondent has preferred not to appear before this Court. It seems that respondent has nothing to oppose the present petition.

6. In view of the above, the present petition is allowed. Accordingly, Mr. Justice (Retd.) Vinod Goel (Mobile:9910384637) is appointed sole Arbitrator in this petition 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.

10. A copy of this order be sent to the learned Arbitrator for information.

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