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IN THE HIGH COURT OF DELHI
V. Kameswar Rao, J.
Mukut House Developers Private Limited - Appellant
Versus
Gurinder Singh Kairon - Respondent
Arb.P. 312 of 2021 & I.A. 12501 of 2021
Decided On : 31-10-2022




Legal heirs may represent a deceased party in arbitration proceedings; unresolved issues regarding agreement stamping do not halt arbitration process pending settlement by a higher bench.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11(5) - Application for appointment of sole arbitrator - Court permitted legal heir to represent deceased party - Arbitration clause present in collaboration agreement dated September 07, 2011 - Court must ensure arbitration proceedings proceed despite issues concerning the agreement's stamp - Court appointed an arbitrator to adjudicate disputes as per clause in the agreement. (Paras 4, 29)

(B) Legal heirs - Procedure for impleadment of legal heirs under Order 1 Rule 10 of CPC, 1908 - Legal heirs can continue proceedings when a party dies. (Paras 1, 2)

(C) Arbitration clause - Court cannot dismiss the arbitration petition based on alleged unstamped documents as per recent judgments emphasizing continuity until resolved. (Paras 23, 26)

Table of Content
1. application for legal heir impleadment (Para 1 , 5)
2. background on collaboration agreement and payment disputes (Para 2 , 6 , 7 , 8 , 9 , 11 , 12 , 13 , 15 , 18 , 21)
3. court's need to decide on arbitration clause validity (Para 3 , 4 , 10 , 14 , 17 , 20 , 23 , 24 , 25 , 26 , 28 , 30)
4. need for arbitration due to non-payment (Para 22)
5. appointment of sole arbitrator (Para 29 , 31)

JUDGMENT

V. Kameswar Rao, J.

I.A. 12501/2021

1. This is an application filed by the petitioner under Order 1 Rule 10 read with Order XXII Rule 4 of CPC, 1908, for impleadment of legal heirs of the deceased respondent No.1. The prayers made in the application are the following:

    "In light of the foregoing submissions, it is prayed that this Hon'ble Court may be pleased to:

    a) Take on record Respondent No.2, namely Shri Harpratap Singh as the legal heir of the deceased Respondent No.1, namely Shri Gurinder Singh Kairon in this petition;

    b) Direct the Respondent No.2 to file on affidavit the particulars of any other legal heirs of the deceased Respondent No.1 and permit the Petitioner to file an amended memo of parties thereafter;

    c) Pass such other order(s) as this Hon'ble Court may deem fit and proper in the facts and circumstances of the present case."

2. It is the case of the petitioner, in this application, that the respondent No.1 has expired on December 31, 2020. It is also the case of the petitioner that both the respondents i.e., the respondent No.1 viz. late Sh. Gurinder Singh Kairon and the respondent No.2 viz. Harpratap Singh, were signatory to the Collaboration Agreement dated September 07, 2011. It is also stated that the respondent No.2, is the son of the deceased respondent No.1 and the petitioner and its Counsels do not have any information pertaining to any other legal heirs of the deceased respondent No.1. It is also stated that the respondent No.2 substantially represents the estate of the deceased respondent No.1 and shall continue to defend the present petition on behalf of the late respondent No.1. So, it is prayed before this Court that the respondent No.2 be taken on record as the legal heir of the deceased respondent No.1.

3. In view of the stand of the petitioner, the present application is allowed and thus the deceased respondent No.1 shall be represented through his legal heir i.e., respondent No.2. Accordingly, the amended memo of parties be filed by the petitioner within the period of 10 days from today.

4. Application stands disposed of.

ARB.P. 312/2021

5. The present petition is filed by the petitioner under Section 11(5) of the Arbitration and Conciliation Act,1996 (hereinafter referred to as `A&C Act,1996') with the following prayer:

    "In view of the facts and circumstances of the present case, it is respectfully prayed that this Hon'ble Court may be pleased to:

    a) Appoint a neutral Sole Arbitrator as per the provisions of the Arbitration and Conciliation Act, 1996 pursuant to Arbitration Clause in the Collaboration Agreement dated 07.09.2013;

    b) Grant the cost of the present Petition to the Petitioner;

    c) Pass any other order/s that this Hon'ble Court may deem fit and proper in the facts and circumstances of the present case."

6. It is a case where the petitioner is a company incorporated under the provisions of the Companies Act, 1956, entered into the `Collaboration Agreement' (hereinafter, referred to as the `Agreement') dated September 07, 2011, with the respondents.

7. As per the Agreement, the respondents, inter alia, had to provide the `Project Land' i.e., the land comprising of `Building No.3 bearing Corporation No.362/XII-min. along with land underneath measuring 6675 sq. yards bearing khasra no.1312 and 1315, situated at THE MALL, Amritsar, Punjab', at the complete disposal of the petitioner for the construction and development of the `Complex' (i.e., the commercial complex comprising of shopping mall and two basements to be constructed on the `Project Land') and whereas the

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