IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
MBD Printographics Pvt. Ltd. - Appellant
Versus
Paragon Paper Industries - Respondent
Arb.P. 506 of 2021
Decided On : 13-01-2022
| Table of Content |
|---|
| 1. applications processed and order concluded. (Para 1 , 4 , 5 , 6 , 21 , 22) |
| 2. appointment and procedures for arbitrator established. (Para 2 , 17 , 18 , 19 , 20) |
| 3. dispute resolution agreement accepted. (Para 3 , 15 , 16) |
| 4. arbitration agreements defined and invoked. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14) |
I.A. 9063/2021 (u/O. 1 R. 10 r/w S. 151 CPC)
I.A. 9061/2021 (u/O. 1 R. 10 r/w S. 151 CPC)
1. The present applications have been filed by the applicants/respondent Nos.6 and 7, respectively, seeking striking off their names from the array of the parties.
2. Notice issued.
3. Learned counsel for petitioners accepts notice and submits that he has no objection if the present applications are allowed.
4. Accordingly, the present applications are allowed and respondent Nos.6 and 7 are deleted from the array of the parties.
5. Petitioner is directed to file amended memo of parties within three days.
6. Accordingly, the present applications stand disposed of.
ARB.P. 506/2021
7. The present petition has been filed under Section 11(6) (A) of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator to adjudicate the disputes inter-se b/w the parties.
8. As per the averments made in the present petition, petitioner is a company engaged in the business of paper and paper products. Respondent No. 1 is a partnership firm formed vide partnership deed dated 08.10.2018. Respondent Nos.2 and 3 are involved in the business of paper and paper products. The Respondent No. 4 & 5 are companies run and managed by the partners of respondent No.1 having same office address and operated with the same set of management.
9. It is further averred in the present petition that respondent No.1 through respondent Nos.2 & 3, approached the petitioner for the purpose of processing the raw materials thereby manufacturing of paper and paper products from the paper mill of the petitioner on the terms and conditions set out in agreements signed between petitioner and respondents. On 11.10.2018, the petitioner and respondents executed a Job Work agreement. Parties also entered into another Agreement, i.e. Improvement Plan Agreement, on the same date. Petitioner also entered into two more separate agreements with respondent No.4 and respondent No.5, i.e. Project Management Agreement and Agreement for Sale Purchase of Paper and Paper Products, respectively. Petitioner and Respondents agreed on the terms set out in the respective agreements for further smooth conduct of their businesses.
10. It is further averred that in the agreements dated 11.10.2018, it is abundantly clear that in the event of any default/breach of terms and conditions under the agreements, the respondents shall indemnify the petitioner.
11. Further, all the four agreement dated 11.10.2018 executed between the parties abovementioned separately prescribed at Clause 17.1 & 17.2 in the Agreement for Job Work, Clause 10.1 & 10.2 in the Improvement Plan Agreement, Clause 15.1 & 15.2 of the Project management Agreement and Clause 15.1 & 15.2 of the Agreement for Sale Purchase of Paper and Paper Products that in the event of any dispute of whatsoever nature is incapable of being resolved amongst the parties amicably then and in that event the parties have agreed to refer all dispute to the sole Arbitrator.
12. Further, petitioner approached the respondent Nos. 1, 2 & 3 vide notice dated 03.06.2020 subjected: "Demand letter cum notice of Invocation of Termination for material default in payments of commitment charges and other payables taxes as stipulated under the agreement for Job work dated 11.10.2018."
13. Respondents and the Petitioner had discussions on several occasions to resolve the dispute between them and on 05.10.2020, respondent No.3 in the capacity of Partner/Managing Director of respondents/institutions had ensured and undertaken the modalities to resolve the dispute/claim against each other however, no step
The court affirmed the necessity for arbitration as agreed by the parties in their contracts, appointing a sole Arbitrator to resolve multiple disputes arising from distinct agreements.
The main legal point established is the court's authority to appoint a sole arbitrator and determine the process for adjudicating disputes based on the specific arbitration clauses in the agreements,....
The presence of a Dispute Resolution Clause in arbitration agreements necessitates the appointment of arbitrators to resolve disputes, ensuring compliance with statutory requirements.
The court emphasized the importance of compliance with the arbitration and Conciliation act, 1996 and directed the appointment of arbitrators as per the agreement reached by the parties.
Court has the discretion to appoint a new Arbitrator to continue unresolved arbitration proceedings, affirming continuity even after the previous Arbitrator's death.
The main legal point established is the enforcement of the arbitration clause and the appointment of a sole arbitrator to resolve the dispute.
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.
The court can appoint an Arbitrator when parties fail to mutually agree, as per agreement provisions and arbitration law.
The court's decision emphasized the arbitrability of disputes and the appointment of a sole arbitrator under the Arbitration and Conciliation Act, 1996.
Premature petitions under Section 11 of the Arbitration and Conciliation Act, 1996, are not maintainable when a Sole Arbitrator has already been appointed, and unresponsiveness of the current Arbitra....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.