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DELHI HIGH COURT
PRATEEK JALAN
Consolidated Construction Consortium Limited – Appellant
Versus
South Delhi Municipal Corporation – Respondent
JUDGMENT
1. By way of the present petition under Section 11 of the Arbitration and Conciliation Act, 1996 ["the Act"], the petitioner seeks appointment of an arbitrator to adjudicate disputes arising between the parties under a Concession Agreement dated 14.03.2011 for "Development of Multilevel Automated Parking-cum-Commercial Complex at South Extension Part-I & II, New Delhi" ["the Agreement"]. The Agreement was awarded to the petitioner on 30.07.2010, pursuant to a tender issued by the respondent.
2. The petitioner relies upon Article 20 of the Agreement, entitled "Disputes", which reads as follows:
"Article 20: DISPUTES
In the event that any dispute, controversy or claim arises among the Parties in connection with or under this Agreement or the interpretation of any of its provisions or upon the occurrence of an event of Default any party shall refer the dispute, controversy or claim to the Commissioner, MCD.
Section 20.1 Mediation by Commissioner
The Party that initially issued the notice of intention to refer the matter to the MCD and MCD in Consultation with Consultant will appoint a officer who will look into the written documents; (i) a description of dispute; (ii) a s
Article 20 of the Concession Agreement constitutes an arbitration agreement despite its mediation label, featuring binding decision-making attributes and fulfilling statutory requirements.
The dispute resolution clauses in the Concession Agreements do not constitute valid arbitration agreements under Indian law due to lack of intent, binding nature, and necessary compliance with arbitr....
Point of Law : Arbitration - Concession Agreement – Maintainability of writ - Power under Article 227 of Constitution in a rare and exceptional circumstance - When an alternative and efficacious reme....
An agreement to constitute an Arbitration Agreement must involve the Arbitral Tribunal determining the rights of the parties in an impartial and judicial manner, with an equal obligation of fairness ....
The judgment establishes the requirement of a written agreement for arbitration, the interpretation of settlement of disputes clauses, and the significance of party conduct in determining the existen....
An arbitration agreement remains valid and enforceable despite procedural limitations on arbitrator appointment, ensuring disputes are addressed effectively.
The main legal point established in the judgment is the importance of party autonomy in arbitration, the enforceability of the entire arbitration clause, and the conditional acceptance of arbitration....
The use of 'may' in arbitration agreements indicates optionality rather than obligation, requiring mutual consent for arbitration to be valid.
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