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IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
Hero Fincorp. Limited - Appellant
Versus
Feedback Power Operations and Maintenance Services Pvt. Ltd. - Respondent
Arb.P. 1103 of 2021
Decided On : 04-05-2022
Important Points
Subject
Arbitration - Dispute Resolution
Headnote
(B) Duties of Arbitrator - Appointment of Arbitrator - Consent of parties required - Arbitrator to disclose under section 12 of the Arbitration and Conciliation Act, 1996. (Paras 5-7)
Facts of the case:
Disputes arose from the sanction of a loan on 04.07.2019, with the petitioner seeking arbitration; respondents express willingness to settle but no resolution achieved after a meeting.
Findings of Court:
The petition is allowed for arbitration due to the presence of the arbitration clause and the failure to resolve disputes.
Issues: Whether the disputes can be referred to arbitration despite an attempt at settlement not reaching a conclusion.
Ratio Decidendi: Court found that when an arbitration clause is present and parties consent to arbitration, disputes unresolved after negotiation are grounds for proceeding with arbitration.
Result: Petition allowed, and an Arbitrator appointed.
| Table of Content |
|---|
| 1. dispute arises from loan sanction. (Para 1) |
| 2. parties attempted but failed to settle. (Para 2 , 3) |
| 3. arbitration clause in sanction letter acknowledged. (Para 4) |
| 4. appointment and fees of arbitrator established. (Para 5 , 6 , 7) |
| 5. petition disposed with terms established. (Para 8) |
JUDGMENT
Sanjeev Sachdeva, J. Petitioner seeks reference of disputes to the Arbitral Tribunal that have arisen out of the Sanction of Working Capital Term Loan, sanctioned vide letter dated 04.07.2019.
2. Learned counsel for the respondents submits that respondents are willing to settle their disputes with the petitioner and even had a meeting in the office of the petitioner.
3. Learned counsel for the petitioner submits though a meeting had taken place, however, the same was not successful and petitioner has instructed the counsel that no settlement has been arrived at and to proceed with the matter.
4. Since there is no dispute that the subject sanction letter contains an arbitration clause and parties have agreed to settle their disputes through arbitration and disputes that have arisen between the parties could not be resolved, the petition is allowed.
5. Accordingly, with the consent of the parties, Mr. Justice Manmohan Sarin (retd) former Chief Justice, Jammu and Kashmir High Court (Mobile # +91 9818000210) is appointed as the sole Arbitrator to adjudicate the claims and counter claims, if any, of the parties.
6. The fees of the Arbitrator shall be as per the Fourth Schedule of the Arbitration and Conciliation Act, 1996.
7. The Arbitrator shall furnish the requisite disclosure under section 12 of the Arbitration and Conciliation Act, 1996 within two weeks of entering reference.
8. The petition is disposed of in the above terms.
