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DELHI HIGH COURT
C.HARI SHANKAR
Vag Educational Services (M/s.) – Appellant
Versus
Aakash Educational Services Ltd. – Respondent
1. Ms. Qausar Khan appears for the respondent in this matter and submits on instructions that she has no objection if this petition is disposed off on the basis of the submissions advanced by Ms. Tanya Agarwal, learned Counsel for the petitioner and on the basis of the material on record.
2. Accordingly, I have heard Ms.Agarwal and proceed to dispose of the matter on the basis of the record available with the Court.
3. The issue in controversy is brief. Arb.Case No. 110/18, which was continuing between the petitioner and the respondent before a learned Sole Arbitrator, was withdrawn by the respondent, as the claimant in the arbitral proceedings on 21st September 2019. The order passed by the learned Sole Arbitrator on the said date reads thus:
"Arbitration Case No. 110/18
AESL V. VAG Educational Services Ltd.
21.9.2019
Pr: Sh. Shwaney Singh Meena A/R with Ms. Namita Advocate for the claimant
Shri Mahesh Chandra Gupta Adv for the NC/Respondent with Shri Vishal Gupta
In view of the submissions of the A/R and Ld. Counsel for the claimant the present matter is dismissed as withdrawn.
Order announced and dictated in open tribunal
File be kept on record.
21.9.2019
S
An arbitrator loses jurisdiction after the termination of proceedings, rendering any subsequent orders void.
Arbitrators must consider recall applications under Section 25(a) of the Arbitration Act when sufficient cause is shown, especially in the absence of alternate remedies for appeal.
High Court’s exercise of jurisdiction under Article 227 of the Constitution, and setting aside of the order of the Tribunal.
The main legal point established in the judgment is the arbitrator's duty to inform the claimant of their failure to communicate their claim and to provide an opportunity to show sufficient cause, an....
The Arbitrator has jurisdiction to consider recall of a termination order if sufficient cause is shown for non-filing of claims, reinforcing judicial support for arbitral processes. The defaulting pa....
The Arbitral Tribunal cannot grant liberty to file fresh claims after withdrawal, as it exceeds its jurisdiction and renders it functus officio.
Parties involved in arbitration may withdraw petitions and seek recourse before appointed arbitrators to maintain their rights under the Arbitration and Conciliation Act.
The main legal point established in the judgment is that interim orders in arbitration proceedings, not falling within the appealable orders under the Act, are not subject to correction by the High C....
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