The court appointed a sole arbitrator to resolve disputes under a tender agreement after the respondent failed to respond to the arbitration notice, confirming necessity when an arbitration clause is invoked.

ORDER

Chandra Dhari Singh, J. (Oral)

I.A. No. 15794/2022 (for Exemption)

Subject to the petitioner filing the clear, original and legible/typed copies of any dim documents on which the petitioner may seek to place reliance, within four weeks from today, exemption is granted for the present.

The application is disposed of.

ARB.P. 1121/2022

1. The present petition under Section 11(6) of the Arbitration & Conciliation Act, 1996 has been filed by the petitioner seeking to appoint a sole arbitrator to adjudicate and resolve the disputes between the parties.

2. The Petitioner is a Private Limited Company with its registered office at 3588, Main Bazar, Old Subzi Mandi, Delhi-110007 and is involved in the business of event planning, providing printing services, printing banners and other materials, among other things.

3. The Respondent No. 1 is a government agency that falls under Respondent No. 2. On 26th February, 2018 it launched a tender with the tender ID 2018_FSCAD_146280_1 for the supply of printed vinyl boards. The respondent no. 1 provided a list of addresses for the installation of 2154 preprinted vinyl boards, wherein the petitioner company also participated and submitted its bids. Upon opening of bids, the Petitioner company being declared a successful bidder, was awarded with the work for supply of printed vinyl boards pursuant to order no. F.1(438)/CFS/Gen/2012-13/871-83 dated 25th July, 2018.

4. Learned counsel for the petitioner submitted that the work was completed successfully, and the petitioner company raised and submitted a bill for it, bearing number SPACE/270 dated 07th January, 2019 for a total of Rs. 10,26,855/- and bill no. SPACE/PR/A001 amounting to Rs.16,208/- thus, totalling the amount to Rs. 10,43,063/- (Rupees ten lakhs forty three thousand sixty three only).

5. It has been submitted by the learned counsel for the petitioner, that despite several verbal requests, visits to respondent no. 1's office, and written reminders, the petitioner has not received payment pertaining outstanding invoices, and the aforementioned sum of Rs. 10,43,063/- (Rupees ten lakhs forty three thousand sixty three only).

6. Being aggrieved thereof, the Petitioner invoked the Arbitration clause in the Tender Agreement i.e. Clause 29 and consequently, issued a legal notice under Section 21 of the Arbitration & Conciliation Act, 1996 on 12th August, 2021 seeking appointment of arbitrator. However, despite more than two months having passed since the respondents were served with the aforementioned notice, they have not responded by designating an Arbitrator to conduct Arbitration for the adjudication of the petitioner's claims, therefore, the petitioner is compelled to file the current petition.

7. Learned Counsel for the Respondent has denied to allegations made in the instant petition but has no objection to the relief sought by the Petitioner and in consequence thereof, to the appointment of sole arbitrator.

8. Heard learned counsel for the parties and perused the record.

9. Keeping in view the facts and circumstances of the present case, the submissions made on behalf of petitioner and no objection of the Respondent, this Court is inclined to allow the prayer of the Petitioner and consequently appoint a sole arbitrator to adjudicate upon the issues arising between the parties. As a result of the parties' request, any disagreements or disputes occurring under the terms of the tender agreement are referred to arbitration by the appointment of sole arbitrator, in order to be resolved. Hence, the following order:

ORDER