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DELHI HIGH COURT
NEENA BANSAL KRISHNA
Harcharan Dass Gupta – Appellant
Versus
Hindustan Pre-Fab Limited – Respondent
| Table of Content |
|---|
| 1. existence of disputes and appointment procedures. (Para 2 , 3) |
| 2. allegations on the maintainability of the arbitration petition. (Para 4 , 5 , 6 , 7 , 8 , 9 , 10) |
| 3. role and obligations of the executing agency. (Para 12 , 15 , 16 , 17) |
| 4. limitations and procedural issues in arbitration claims. (Para 18 , 19) |
| 5. order allowing the petition and appointment of arbitrator. (Para 20 , 21) |
JUDGMENT
Neena Bansal Krishna, J. (Oral)--A petition under Section 11 of the Arbitration & Conciliation Act, 1996 for appointment of arbitrator, has been filed on behalf of the petitioner.
2. The petitioner was awarded a work regarding construction of Police Station at "C" Block, Janakpuri, New Delhi vide letter No. HPL/DGM(ENGG.)/DP/JP/2012-13/01 dated 31st October, 2012. According to the stipulated terms, the date of start of work was 14th November, 2012 and was to be completed by 13th February, 2014 i.e. within a period of fifteen months. The work, however, got completed on 15th November, 2016. The final bill as raised by the petitioner was not paid by the respondent No.1. It is asserted that a sum of Rs.2,81,78,727/- by way of pre-final bill of the undisputed items is due to the
An arbitration agreement is enforceable despite claims of payment completion, recognizing the agency relationship between parties, allowing disputes to be resolved through arbitration.
The court established that an arbitration agreement exists between the petitioner and the respondents, as the executing agency was acting on behalf of the principal; claims related to payment dispute....
The court ruled that jurisdiction under Section 11(6A) is limited to assessing the existence and validity of arbitration agreements, with unresolved factual disputes requiring arbitration.
The main legal point established is that a party to a contract cannot absolve its liabilities and must comply with dispute resolution clauses, and claims must be within the period of limitation.
As per Section 11 (13) of the Act now arbitration is required to be decided within 30 days.
Point of Law : Arbitrator making the necessary disclosure as required under Section 12(1) of the Arbitration & Conciliation Act.
The main legal point established in the judgment is that the petitioner's failure to exhaust the mandatory dispute resolution procedure as per the contract rendered the petition premature and non-mai....
An arbitration agreement remains valid and enforceable despite procedural limitations on arbitrator appointment, ensuring disputes are addressed effectively.
The appointment of an arbitrator is warranted when a valid arbitration clause exists and the opposing party does not object, ensuring prompt resolution of contractual disputes.
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