IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
CFS Netralaya Private Limited - Appellant
Versus
Roop (Dr.) - Respondent
Arb.P. 111 of 2022, Arb.P. 112 of 2022 and Arb.P. 203 of 2022 & I.A. 2791 of 2022
Decided On : 18-02-2022
| Table of Content |
|---|
| 1. filing petitions under arbitration act (Para 1 , 2) |
| 2. disputes under various agreements (Para 3 , 4 , 5 , 6 , 7) |
| 3. invocation of arbitration (Para 8 , 10) |
| 4. appointment of sole arbitrator (Para 9 , 12) |
| 5. final orders and compliance (Para 13 , 14 , 15 , 16) |
1. The above captioned three petitions have been filed under the provisions of Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator.
2. Pertinently, parties to these petitions are common and the subject matter of these petitions is also common, therefore, with the consent of learned Senior Counsel for the parties, these petitions have been heard together and are being disposed of vide this common judgment.
3. Learned Senior Counsel for petitioner submits that petitioner in the above captioned petitions [ARB.P. 111/2022 & ARB.P. 112/2022] is a joint venture company between New Delhi Centre for Sight ("NDCFS") and respondent Nos.1 and 2, incorporated under provisions of the Companies Act 1956. NDCFS is a company founded by Dr. Mahipal S Sachdev, an eminent ophthalmologist, and Padma Shri awardee, as a leading eye care provider in India.
4. Petitioner in (ARB.P. 203/2022) is a wholly owned subsidiary of New Delhi Centre for Sight ("NDCFS") and is engaged in the business of providing pharma, optical and other related products at the eye care centres owned/run by NDCFS. The said petitioner also provides pharma, optical and other related products at the eye centre operated by CFS Netralaya Private Limited ("CFSNPL") i.e., a joint venture entity of NDCFS and the respondents.
5. Further, petition (ARB.P. 111/2022) has been preferred on behalf of the petitioner seeking appointment of Sole Arbitrator for adjudication of the disputes and differences which have arisen under the Lease Deed dated 02nd March 2013 ("Lease Deed"), read with the Memorandum of Understanding dated 26th April 2019 ("2019 Agreement") executed between the petitioner and the respondents. Clause 15.2 of the Lease Deed provides for settlement of disputes through arbitration & the Lease Deed and the 2019 Agreement are binding on the parties. The Lease Deed has been signed by the petitioner and all the respondents, while the 2019 Agreement has been executed by the petitioner along with respondent Nos.1 and 2 (on their behalf as well as on behalf of the Respondent Nos. 3 and 4).
6. Petition (ARB.P. 112/2022) has been preferred on behalf of the petitioner seeking appointment of Sole Arbitrator for adjudication of the disputes and differences which have arisen under the Consultancy Services Agreements dated 10th March, 2011 (as amended) executed by the respondents ("Consultancy Services Agreements") read with the Memorandum of Understanding dated 26th April, 2019 ("2019 Agreement") executed between the petitioner, NDCFS and the respondents. Clause 11 of the Consultancy Services Agreements provides for settlement of disputes through arbitration & the Consultancy Services Agreements and the 2019 Agreement are binding on the parties. The Consultancy Services Agreements and the 2019 Agreement have been signed by the petitioner and the respondents.
7. It is submitted that petition (ARB.P. 203/2022) has been preferred on behalf of the petitioner seeking appointment of Sole Arbitrator for adjudication of the disputes and differences which have arisen under the Joint Venture Agreement dated 10th March, 2011 ("Joint Venture Agreement") as amended by and read with First Amendment Agreement dated 14th August, 2012 to Joint Venture Agreement ("First Amendment Agreement to the Joint Venture Agreement") and the Memorandum of Understanding dated 26th April, 2019 ("2019 Agreement"). Clause 22 of the Joint Venture Agreement provides for settlement of disputes through arbitration & the arbitration clause in the Joint Venture Agreements stands incorporated in the First Amendment Agreement to the Joint Venture Agreement.
8. Learned Senior Counsel for
The court underscores the importance of appointing the same arbitrator for disputes arising from related agreements to avoid conflicting awards.
The court's decision emphasized the importance of appointing the same arbitrator to hear disputes related to the same composite transaction to avoid conflicting findings.
The presence of a Dispute Resolution Clause in arbitration agreements necessitates the appointment of arbitrators to resolve disputes, ensuring compliance with statutory requirements.
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 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.
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 allows a petition to appoint an arbitrator despite the challenger's claims about non-signatory status and procedural prematurity, emphasizing the arbitrability of disputes.
The arbitration agreement binds all parties, including non-signatories, and disputes must be referred to arbitration despite objections on limitation and jurisdiction.
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