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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




The court underscores the importance of appointing the same arbitrator for disputes arising from related agreements to avoid conflicting awards.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11 - Appointment of Sole Arbitrator - Three petitions filed for appointment of a sole arbitrator due to disputes under various agreements, including Lease Deed and Joint Venture Agreement - Petitioner invoked arbitration clauses in accordance with respective agreements - Court appointed Mr. Justice Deepak Gupta (Retd.) as Sole Arbitrator, leaving open issues of consolidation and maintainability for the Arbitrator. (Paras 1-12)

(B) Joint Venture Agreements - Disputes arising under Joint Venture and Consultancy Agreements must be resolved by the same Arbitrator to avoid conflicting findings. (Paras 10-11)

Facts of the case:
The petitions involve a joint venture between two companies, engaging in eye care services, and various agreements stipulating arbitration for dispute resolution. The petitioner alleges breaches of these agreements and seeks arbitration.

Findings of Court:
Court appointed Justice Deepak Gupta as Sole Arbitrator for the resolution of disputes.

Issues: The main issue addressed was whether to consolidate disputes related to multiple agreements between the same parties under one arbitrator.

Ratio Decidendi: The court highlighted the necessity to appoint the same arbitrator to ensure consistent resolutions across related disputes.

Result: Petitions disposed of with the appointment of Sole Arbitrator.

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)

JUDGMENT (Oral)

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

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