IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Gurvinder Singh Gill, J.
Mala Kshetrapal Through Attorney Kanwal Preet Singh Bindra - Petitioner - Appellant
Versus
Gunveen Singh - Respondent - Respondent
ARB-378 of 2022 (O&M)
Decided On : 15-09-2023
Arbitration - Appointment of Arbitrator - Section 11(6) of Arbitration and Conciliation Act, 1996 - Order 5 Rule 15 CPC - Landlord/Tenant Dispute - Vidya Drolia and others Vs. Durga Trading Corporation 2020 SCC Online SC 1018
Fact of the Case:
The petitioner filed a petition seeking appointment of an Arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996. The respondent was served through a member of his family and also through email and WhatsApp.
Finding of the Court:
The court found that the respondent was duly served and proceeded against ex parte. It was noted that the lease deed between the parties specifically provided for resolution of disputes through arbitration.
Issues: The issues involved the service of the respondent and the applicability of arbitration in a landlord/tenant dispute.
Ratio Decidendi: The court relied on Order 5 Rule 15 CPC for service and cited the judgment in Vidya Drolia and others Vs. Durga Trading Corporation 2020 SCC Online SC 1018 to establish that landlord/tenant disputes are arbitrable.
Final Decision: The petition was accepted, and Shri R.S.Virk was appointed as the sole Arbitrator, subject to his declaration of independence and impartiality. The venue for the arbitration was set, and the parties were directed to appear before the Arbitrator on a specified date.
GURVINDER SINGH GILL, J.
CM-13054-CII-2023
The application was filed seeking preponement of the main case. However, the said application has already lost its currency and as such, has been rendered redundant and is disposed of as such.
CM-3088-CII-2023
Learned counsel submits that the instant application seeking service of the respondent by substituted process was filed in January, 2023, but since the respondent has been served as of now, he does not press the instant application.
In view of the above, the instant application is disposed of being not pressed.
1. The instant petition has been filed by the petitioner under Section 11(6) of Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator so as to adjudicate on the dispute between the parties.
2. Notice of the petition had been issued to the respondent. Despite notices having been issued on several occasions the respondent could not be served. However, as per the office report dated 11.9.2023 dasti summons have now been received back served upon the respondent through Sonika who is stated to be a member of family of the respondent.
3. Learned counsel has further submitted that as a matter of fact the petitioner had also sent notices to the respondent on 27.10.2022 through his E-mail ID i.e. “gunveensingh25@gmail.com” and that the respondent had previously responded in respect of some other correspondence from the said e-mail ID as would be evident from Annexure P-8 which would show that the E-mail ID is being used by the respondent.
4. Learned counsel has further submitted that the petitioner as a matter of abundant caution also sent information regarding pendency of the present petition through WhatsApp. Learned counsel has today passed on photocopy of E-mail dated 27.10.2022 and also photocopies of the screenshots of the WhatsApp message sent to the respondent.
5. Having regard to the aforestated position particularly the fact that the respondent is stated to have been served physically through a member of his family namely Sonika, it is held that the respondent stands duly served. In this context Order 5 Rule 15 CPC is reproduced hereunder:
Explanation. A servant is not a member of the family within the meaning of this rule.
6. In view of the aforesaid provisions and also the fact that respondent has also been physically served, and none has appeared on behalf of the respondent, the respondent is proceeded against ex parte.
7. A perusal of Clause 21 of the lease deed dated 15.1.2019 (Annexure P-3) would show that the parties had specifically agreed for resolution of the disputes through arbitration. A perusal of notice dated 9.6.2022 (Annexure P-15) would show that vide said notice the respondent had specifically been called upon for initiation of arbitration proceedings, but to no avail.
8. It may here be mentioned that the matter basically is in the nature of a landlord/tenant dispute and Hon’ble Supreme Court in its recent judgment rendered in Vidya Drolia and others Vs. Durga Trading Corporation 2020 SCC Online SC 1018 has held that even such disputes can be adjudicated by way of arbitration. The relevant portion of the judgment is reproduced herein under:
Landlord/tenant disputes are arbitrable as per the Transfer of Property Act and can be resolved through arbitration, as established in the judgment of Vidya Drolia and others Vs. Durga Trading Corpor....
Where a party defaults on contractual obligations and fails to contest a petition for arbitration, the court may appoint a sole arbitrator to adjudicate the dispute.
The main legal point established in the judgment is the court's authority to appoint a sole arbitrator to adjudicate disputes under the Arbitration and Conciliation Act, 1996, in cases where one part....
The specific provision for resolution of disputes by arbitration in an agreement can lead to the appointment of an arbitrator if the respondent fails to contest the petition.
The court upheld its jurisdiction to appoint an arbitrator in landlord-tenant disputes based on an arbitration clause, affirming party autonomy in jurisdictional matters despite objections.
Appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 in cases of serious breach of lease terms.
The court has the authority to appoint a substituted sole arbitrator, and the appointed arbitrator must ensure compliance with the provisions of the Arbitration and Conciliation Act, 1996.
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