Parties may mutually agree to refer disputes to arbitration, preserving the right to counterclaims while resolving contractual disputes.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Reference to arbitration - Disputes between parties concerning a contract agreement dated 20.02.2014 seeking reference to an Arbitral Tribunal. Respondent agreed to reference but reserved rights to counterclaims. (Paras 1-3)

(B) Consent of parties - Agreement by both parties to refer disputes to arbitration shows a mutual resolution to adjudicate claims. (Paras 3-4)

Facts of the case:
The petitioner sought a reference to arbitration regarding disputes from a contract, while the respondent contended that a supplementary agreement superseded the original agreement but had no objection to arbitration.

Findings of Court:
The petition is allowed and the former judge is appointed as the Sole Arbitrator, with fees as per the Fourth Schedule of the Arbitration and Conciliation Act.

Issues: The court addressed the validity of the original agreement in light of the supplementary agreement and the procedural aspects of arbitration.

Ratio Decidendi: The court found that since both parties consented to arbitration, the disputes could be referred without prejudice to any rights.

Result: Petition allowed.

JUDGMENT

Sanjeev Sachdeva, J.

1. Petitioner seeks reference of disputes to an Arbitral Tribunal in terms of Contract Agreement dated 20.02.2014.

2. Learned counsel for the respondent submits that the contention of the respondent is that agreement has been superseded by the supplementary agreement. However, without prejudice to their rights and contentions, they have no objection to the disputes being referred to a Sole Arbitral Tribunal reserving the right of the respondent to raise a counter claim and raise all admissible disputes in law.

3. Since the parties are agreeable to reference of their disputes to arbitration, the petition is allowed.

4. With the consent of the parties and without prejudice to their rights and contentions, Mr. Justice A.K. Pathak, former Judge of this Court (Mobile # +91 9910384602; email: pathakak57@gmail.com) is appointed as the Sole Arbitrator to adjudicate the claims and counter- claims, if any, of the parties.

5. The fees of the learned Arbitrator shall be as per the Fourth Schedule of the Arbitration and Conciliation Act, 1996.

6. The Arbitrator shall furnish the requisite disclosure under section 12 of the Arbitration and Conciliation Act, 1996 within two weeks of entering reference.

7. The petition is disposed of in the above terms.

8. The next date of 29.04.2022 is cancelled.

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