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DELHI HIGH COURT
SANJEEV NARULA
P.K. Advertising Services Pvt. Ltd. – Appellant
Versus
North Delhi Municipal Corporation – Respondent
| Table of Content |
|---|
| 1. appointment of arbitrator agreed by parties (Para 1 , 2 , 3) |
| 2. contract details and dispute basis (Para 8 , 9) |
| 3. petitioner's claim under force majeure (Para 10 , 11 , 12 , 13 , 14) |
| 4. ndmc's arguments against concessions (Para 15 , 16 , 17 , 18 , 19) |
| 5. court's analysis of force majeure interpretation (Para 20 , 21 , 22 , 23 , 24) |
| 6. interim measures granted pending arbitration (Para 25) |
| 7. disposal of the petition with directions (Para 26 , 27) |
JUDGMENT
Sanjeev Narula, J. (Oral)--Pursuant to the order dated 2nd May, 2022, Ms. Mini Pushkarna, counsel for North Delhi Municipal Corporation [hereinafter, "NDMC"], states on instructions that she is agreeable if the Court were to appoint an Arbitrator in the instant petition. Ms. Manmeet Arora, counsel for the Petitioner, is also agreeable to the same.
2. Although the present petition is under Section 9 of the Arbitration and Conciliation Act, 1996 [hereinafter, "the Act"], the Court is inclined to accept the request for appointment of arbitrator since there is a consensus between the parties. That said, existence of arbitration agreement between the parties in terms of Clause 28.2 of the License Agreement which forms p
The COVID-19 lockdown is recognized as a force majeure event affecting contractual obligations, necessitating equitable treatment for parties under similar circumstances.
A court can appoint an arbitrator when a party fails to do so despite repeated requests and after exhausting all pre-arbitration mechanisms.
The court upheld the arbitral tribunal's ruling that COVID-19 constituted a force majeure event, excusing the obligation to pay the Annual Fee under the OMDA due to significant revenue loss.
Demonetisation constituted a force majeure event under the contract, materially affecting obligations, thus allowing waiver of payment claims.
A court cannot grant permanent relief under Section 9 of the Arbitration and Conciliation Act, as its provisions are limited to interim measures to support arbitration, not for final outcomes.
The main legal point established is the enforcement of conciliation and arbitration clauses in contracts, the waiver of license fee during force majeure events, and the interpretation of payment mech....
The main legal point established in the judgment is the interpretation of the force majeure clause, the arbitrability of certain claims, and the application of legal principles established in previou....
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