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Jvs Rathi vs Bptp Ltd on 14 October, 2022

Author: Anup Jairam Bhambhani

Bench: Anup Jairam Bhambhani

                          $~3
                          *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +     ARB.P. 795/2022 & I.A. 10787/2022
                                JVS RATHI                                    ..... Petitioner
                                                Through: Mr. L.B. Rai with Ms. Amrita Rai,
                                                             Advocates.
                                                versus
                                BPTP LTD                                   ..... Respondent
                                                Through: Mr. Nitish K. Sharma, Advocate.
                                CORAM:
                                HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI
                                                ORDER

% 14.10.2022 By way of the present petition under section 11(6) of the Arbitration & Conciliation Act 1996 ('A&C Act'), the petitioner seeks appointment of an arbitrator to adjudicate upon the disputes that are stated to have arisen with the respondent from Agreement dated 13.10.2010.

2. Mr. L.B. Rai, learned counsel for the petitioner has drawn the attention of this court to clause 58 of the agreement, which comprises the arbitration agreement between the parties; and contemplates reference of disputes between them to arbitration in accordance with the A&C Act; with arbitration to be held at New Delhi. It is also pointed-out that there is another stipulation in the arbitration clause itself, to the effect that courts at New Delhi shall have exclusive jurisdiction over disputes arising from the agreement.

3. As per the record, the petitioner invoked arbitration vide notice dated 10.05.2022; to which however, the respondent sent no reply.

4. Notice on this petition was issued on 15.07.2022.

5. Mr. Nitish K. Sharma, learned counsel appears for the respondent and submits that the respondent does not wish to file a reply to oppose the petition; and in fact, the respondent is of the view that the disputes between the parties can be resolved by mediation.

6. Mr. Rai, submits that though he does not oppose mediation; however to prevent any further delay in the matter, an arbitrator may be appointed while affording to the parties reasonable opportunity to attempt an amicable settlement of their inter-se disputes through mediation under the aegis of the Delhi High Court Mediation & Conciliation Centre, before being sent to arbitration.

7. Upon a conspectus of the foregoing, this court is satisfied that there is a valid and subsisting arbitration agreement between the parties, with territorial jurisdiction vesting in the courts of law at New Delhi; and also that the petitioners have invoked arbitration vide notice dated 10.05.2022; and ex-facie none of the disputes sought to be raised appear to be non-arbitrable.

8. In view of what is recorded above, the course that commends itself for acceptance to this court, is to appoint a sole arbitrator to adjudicate the disputes between the parties; and to then hold the appointment in abeyance for some time, affording to the parties sufficient time to attempt an amicable resolution of their inter-se disputes.

9. In the circumstances, the present petition is allowed; and Mr. R. Kiran Nath, former District & Sessions Judge, Delhi (Cellphone No. : +91 9910384659) is appointed as the learned Sole Arbitrator to adjudicate upon the disputes between the parties.

10. The learned Arbitrator may proceed with the arbitral proceedings subject to furnishing to the parties requisite disclosures as required under section 12 of the A&C Act; and in the event there is any impediment to the appointment on that count, the parties are given liberty to file an appropriate application in this court.

11. The learned Arbitrator shall be entitled to fee in accordance with Fourth Schedule to the A&C Act; or as may otherwise be agreed to between the parties and the learned Arbitrator.

12. Parties shall share the arbitrator's fee and arbitral costs, equally.

13. All rights and contentions of the parties in relation to the claims/counter-claims are kept open, to be decided by the learned Sole Arbitrator on their merits, in accordance with law.

14. Furthermore, in view of the request made by the parties, to afford to them an opportunity for a mediated settlement, parties are referred to mediation before the Delhi High Court Mediation & Conciliation Centre, with a request to the learned Organizing Secretary to appoint an appropriate mediator in the matter.

15. Let the parties approach the Mediation Centre on Tuesday i.e. 18th October 2022 at 02:30 p.m. for the purpose.

16. A copy of this order be sent to the learned Organizing Secretary of the Mediation Centre, for information and compliance.

17. In view of the above, the order appointing the learned arbitrator shall be held in abeyance for a period of 02 (two) months from the date of the first mediation session; and in the event the disputes remain unresolved, parties are directed to approach the learned arbitrator Signature Not Verified Digitally Signed By:NEERAJ Signing Date:18.10.2022 ARB.P. 795/2022 Page 3 of 4 11:35:15 appointed in the matter within 10 days after the aforesaid two-month period.

18. The petition stands disposed of in the above terms.

19. Other pending applications, if any, also stand disposed of.

ANUP JAIRAM BHAMBHANI, J OCTOBER 14, 2022 ds Signature Not Verified Digitally Signed By:NEERAJ Signing Date:18.10.2022 ARB.P. 795/2022 Page 4 of 4 11:35:15