Positive Real Tech Pvt. Ltd. vs Jyoti Electricals

Headnote Court Copy Facts Arguments Court observation Judicial Analysis Case Map Category Hierarchy Table of Content

IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
Positive Real Tech Pvt. Ltd. - Appellant
Versus
Jyoti Electricals - Respondent
Arb.P. 306 of 2022
Decided On : 30-05-2022

Important Points

Court can correct claim amounts for arbitration disputes, confirming arbitration referral with party consent per Arbitration Act provisions.

Subject

Arbitration - Appointment of Arbitrator

Headnote

(A) Arbitration and Conciliation Act, 1996 - Section 12 - Appointment of Arbitral Tribunal - Disputes arising out of work order referred to arbitration at the Delhi International Arbitration Centre (DIAC); parties consented to constitution of the tribunal - Arbitrator to charge fees as per DIAC's schedule. (Paras 5, 7)

(B) Typographical Error - Correction sought in claim amount from Rs.1 crore to Rs.10 lakhs - No objection raised by the respondent party regarding appointment of the tribunal. (Paras 2, 3)

Facts of the case:
Disputes arose from a work order dated 15.03.2021; petitioner sought the formation of an Arbitral Tribunal to resolve these disputes. (Para 1)

Findings of Court:
The court directed that the disputes be referred to the DIAC for arbitration, establishing the process for arbitrator appointment and fee structure. (Para 5)

Issues: The key question involved the correction of the claim amount and the establishment of an Arbitral Tribunal. (Para 2, 3)

Ratio Decidendi: The court acknowledged the typographical error in the claim and allowed for a correction while confirming the referral to arbitration as mutually agreed by the parties. (Para 5)

Result: Petition disposed of referring parties to DIAC.

Table of Content
1. appointment of arbitral tribunal sought (Para 1)
2. claims and objections regarding arbitration process (Para 2 , 3 , 4)
3. arbitration process and arbitrator's obligations established (Para 5 , 6 , 7)
4. petition disposed of as per arbitration order (Para 8)

JUDGMENT

Sanjeev Sachdeva, J. Petitioner seeks appointment of an Arbitral Tribunal in respect of the disputes that have arisen out of the work order dated 15.03.2021.

2. Learned counsel for the petitioner submits that on account a typographical error in the petition, the claim for loss of reputation has been mentioned as Rs.1 crore instead of Rs.10 lakhs. He submits that the claim be read as Rs.10 lakhs instead of Rs.1 crore.

3. Learned counsel appearing for the respondent submits that without prejudice to their rights and contentions, they have no objection to the Arbitral Tribunal being constituted and the disputes being referred to arbitration.

4. Without prejudice to the above, learned counsel for the parties pray that the parties be referred to Delhi International Arbitration Centre (DIAC).

5. In view of the above, the disputes are referred to the Delhi International Arbitration Centre (DIAC), which would appoint an arbitrator to arbitrate the disputes. 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 two weeks of entering reference.

8. Petition is disposed of in the above terms.