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DELHI HIGH COURT
SANJEEV SACHDEVA
Hero Fincorp. Limited – Appellant
Versus
Feedback Power Operations and Maintenance Services Pvt. Ltd. – Respondent
| 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 th
Court affirmed the validity of arbitration clauses for dispute resolution when parties agree, even after unsuccessful negotiations.
Consent from both parties is pivotal for the appointment of an Arbitral Tribunal under loan agreements per the Arbitration and Conciliation Act, 1996.
Parties can seek arbitration under the Arbitration & Conciliation Act when settlement talks fail, emphasizing the need for an appointed arbitrator to resolve disputes.
The appointment of a sole arbitrator following mutual consent underscores the importance of consent in arbitration proceedings as per the Arbitration and Conciliation Act, 1996.
Parties can agree to arbitration, and courts will appoint an arbitrator to resolve disputes accordingly.
Parties can mutually consent to refer disputes to arbitration despite disagreements on pre-arbitration steps taken.
Parties may consent to an alternative arbitration method despite specified procedures in their agreement, thus allowing for flexibility in dispute resolution.
Parties can resolve disputes through arbitration when they mutually consent, cementing the arbitration process as per the Arbitration and Conciliation Act, 1996.
The court confirmed that appointment of an Arbitral Tribunal can occur with mutual consent of parties, per Arbitration and Conciliation Act, 1996.
The court confirmed party autonomy in arbitration appointments, allowing for a sole arbitrator despite an initial agreement for a three-arbitrator panel.
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