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IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
Varun Gupta - Appellant
Versus
Irrigation and Flood Control Department Govt. of NCT of Delhi - Respondent
Arb.P. 188 of 2022
Decided On : 12-05-2022




Disputes arising from a work agreement must be referred to arbitration when an arbitration clause exists, regardless of claims under consideration.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 12 - Disputes arising from a work agreement - Petitioner sought reference to arbitration due to ongoing disputes despite potential payment of some claims - The parties agreed to refer all disputes to the Delhi International Arbitration Centre for a Sole Arbitrator appointment. (Paras 1, 4, 5)

(B) Arbitration Agreement - The existence of an arbitration clause necessitates referral of disputes to arbitration even if some claims are under consideration to avoid lingering disputes without resolution. (Paras 1, 3)

Facts of the case:
The petitioner sought arbitration for disputes arising from a work agreement dated January 10, 2017, citing unresolved claims despite potential payments being made. Respondent counsel indicated claims under consideration but uncertainty about payments continued.

Findings of Court:
The High Court directed the disputes to be referred to the DIAC for the appointment of a Sole Arbitrator, agreeing on the procedure to be followed as per DIAC rules.

Issues: The court addressed the issue of ensuring all disputes are resolved through arbitration rather than remaining unsettled.

Ratio Decidendi: The court emphasized that disputes must be referred to arbitration when an arbitration clause exists, regardless of claims under consideration, highlighting the importance of clarity in dispute resolution timelines.

Result: Petition disposed of as directed.

Table of Content
1. disputes related to arbitration clause. (Para 1)
2. claims under consideration and ongoing disputes. (Para 2 , 3)
3. agreement to refer disputes to arbitration. (Para 4)
4. arbitrator appointment and fees. (Para 5 , 6 , 7)
5. petition disposed of as per terms. (Para 8)

JUDGMENT

Sanjeev Sachdeva, J. (Oral)--Petitioner seeks reference of disputes arising out of arbitration clause contained in the work agreement dated 10.01.2017.

2. Learned counsel appearing for the respondent submits that some of the claims of the petitioner are under consideration and there is a likelihood that they shall be settled soon and thereafter payment would be made shortly.

3. Learned counsel for the petitioner submits that even if some of the claims are paid there will be still some surviving disputes and further there is no clarity as to when the payment of the claimed amount would be made by the respondent. He accordingly submits that since the disputes would continue to survive, they be referred to arbitration.

4. Without prejudice to the above, learned counsel for the parties agree that the disputes be referred to Delhi International Arbitration Centre for appointment of a Sole Arbitrator for adjudication of the disputes.

5. In view of the above, the disputes are referred to the Delhi International Arbitration Centre (DIAC), which would appoint a sole arbitrator to arbitrate the disputes. The arbitration shall take place under the aegis of the DIAC in accordance with its rules and regulations.

6. The arbitrator would be entitled to charge fees in accordance with the schedule of fee stipulated by the DIAC.

7. The arbitrator shall furnish the requisite disclosure under section 12 of the Arbitration and Conciliation Act, 1996 within one week of entering reference.

8. Petition is disposed of in the above terms.

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