IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
GIRISH AGNIHOTRI, J.
M/s ABW Suncity – Petitioner
Versus
Tarun Malik and Others – Respondents
RA-CR No. 25 of 2021 in ARB No. 52 of 2021
Decided On : 12-05-2021
Arbitration - Appointment of Sole Arbitrator - Section 11(6) of the Arbitration and Conciliation Act, 1996 - [ARB-52-2021, ARB-25-2021] - The court accepted the prayer of the petitioner and appointed a retired Hon’ble Judge of the court as the Sole Arbitrator. The court referred to the pleadings of the petitioner and the respondents, and the judgment in Pravin Electricals Pvt. Ltd. vs. Galaxy Infra and Engineering Pvt. Ltd. to support its decision.
Fact of the Case:
The petitioner developed a residential group housing project and transferred an apartment to the respondents. Dispute arose regarding the payment of taxes and the arbitration clause in the agreement. The respondents initially filed an application under Section 8 of the 1996 Act, claiming no dispute, but later objected to the appointment of a Sole Arbitrator.
Finding of the Court:
The court found merit in the submissions made by the petitioner and accepted the prayer for the appointment of a Sole Arbitrator. The court noted that the respondents cannot blow hot and cold in the same breath and referred to the judgment in Pravin Electricals Pvt. Ltd. vs. Galaxy Infra and Engineering Pvt. Ltd. to support its decision.
Issues: Dispute over the appointment of a Sole Arbitrator, interpretation of the arbitration clause, and contradictory actions of the respondents.
Ratio Decidendi: The court found that the respondents' objections were misconceived and referred the matter to the Sole Arbitrator to examine the existence of an arbitration agreement and decide the merits of the case.
Final Decision: The court appointed a retired Hon’ble Judge as the Sole Arbitrator and directed the parties to appear before the Arbitrator within one month.
JUDGMENT :
GIRISH AGNIHOTRI, J.
1. The matter has been taken up through video conferencing on account of restrictions due to outbreak of COVID-19 pandemic.
2. This order shall dispose of the following Arbitration cases and review applications collectively by way of a common order:
| RA-CR-18-2021 IN ARB-48-2021 | ARB-48-2021 |
| RA-CR-19-2021 IN ARB-16-2021 | ARB-16-2021 |
| RA-CR-20-2021 IN ARB-45-2021 | ARB-45-2021 |
| RA-CR-21-2021 IN ARB-25-2021 | ARB-25-2021 |
| RA-CR-22-2021 IN ARB-26-2021 | ARB-26-2021 |
| RA-CR-23-2021 IN ARB-27-2021 | ARB-27-2021 |
| RA-CR-24-2021 IN ARB-28-2021 | ARB-28-2021 |
| RA-CR-25-2021 IN ARB-52-2021 | ARB-52-2021 |
| RA-CR-27-2021 IN ARB-39-2021 | ARB-39-2021 |
3. For the sake of facts, order is being passed in RA-CR-25-2021 in/and ARB-52-2021 and for the sake of facts, reference is also being made to ARB-52-2021 and ARB-25-2021.
4. Learned counsel for the review-applicant/appellant-respondent submits that the written arguments submitted by the respondents in ARB-52-2021 be treated the common stand of the respondents in all cases.
5. Learned counsel for the non-applicant/petitioner submits that the reply to the RA-CR-21-2021 in ARB-25-2021 be treated the common stand on behalf of the petitioners in all cases.
6. ARB-52-2021 has been filed by M/s ABW Suncity in the nature of petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 inter-alia with a prayer for appointment of a Sole Arbitrator to settle the dispute inter se petitioner and the respondents.
7. Records of the case show that when this case along with other connected matters came up for hearing before this Court on 21.01.2021, this Court had disposed of the present case vide order dated 21.01.2021. In that order, reliance was also placed upon an earlier order passed by this Court dated 09.09.2020 in ARB-134-2020 titled as M/s ABW Suncity vs. Kishen M. Seshadari and Others.
8. Thereafter RA-CR-25-2021 was filed in ARB-52-2021 under Order XLVII Rule 1 read with Sections 114 and 151 CPC inter-alia with a prayer to review the order dated 21.01.2021 passed by this Court. In the review application filed on behalf of the respondents, it has been contended that the respondents for whom learned advocates appeared on 21.01.2021 had not given any instructions to the advocates to the effect that they have no objection in case the Arbitrator from the panel of arbitrators is appointed.
9. At this stage, learned counsel for the respondents-review applicants submits that it is correct that this Court on 21.01.2021 had directed that counsel who are giving consent and have instructions from their respective clients that they have no objection in case an Arbitrator is appointed by this Court, should convey their respective attendance to the admin of the video conferencing group. It is also not disputed that counsel for the review-applicants/respondents had given their presence. However, learned counsel has specifically contended that they had not correctly understood the observations of the Court at the time of hearing and, therefore, in the review applications inasmuch as the review applicants/respondents be allowed to address the oral arguments in support of their review applications and against the appointment of the Sole Arbitrator.
10. In view of the above, this Court in the peculiar facts and circumstances stated above and in the interest of justice, decided to accept the request of the review applicants/respondents through the counsel for the respondents to address the oral arguments on merits. Accordingly, earlier order dated 21.01.2021 is recalled.
11. Records would further show that on 03.03.2021 notice in the review applications was issued to counsel for the non-applicant/petitioner. On 31.03.2021, the matter was adjourned to 05.04.2021. In the meantime, respective counsel were directed to complete their pleadings. Accordingly, the
The court emphasized the importance of upholding arbitration agreements and referred to the judgment in Pravin Electricals Pvt. Ltd. vs. Galaxy Infra and Engineering Pvt. Ltd. to support the appointm....
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Adherence to the terms of the agreement and exhaustion of agreed procedures before seeking court intervention in arbitration disputes.
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