Delhi High Court - Orders
M/S Eco Recycling Ltd vs National Research Development ... on 24 January, 2023
Author: Prateek Jalan
Bench: Prateek Jalan
$~12
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P. (COMM) 519/2019 & I.A. 17587/2019
M/S ECO RECYCLING LTD ..... Petitioner
Through: Mr. Rajeev Mehra, Senior
Advocate with Mr. Arvind Sharma
and Mr. M.K. Jha, Advocates.
versus
NATIONAL RESEARCH DEVELOPMENT
CORPORATION & ANR. ..... Respondents
Through: Mr. J.M. Kalia (Enrolment No.
D/46/1985, Mobile No.
9810325510), Mr. Siddharth
Shukla and Mr. Paras Manchanda,
Advocates.
CORAM:
HON'BLE MR. JUSTICE PRATEEK JALAN
ORDER
% 24.01.2023
1. An adjournment is sought on behalf of Mr. J.M. Kalia, learned counsel for the respondents, on the ground of bereavement in his family.
2. Although there is no objection to this request, Mr. Rajeev Mehra, learned Senior Counsel for the petitioner, points out that enforcement proceedings have been instituted by the respondents.
3. Mr. Mehra submits that the impugned award dated 22.08.2019 is liable to be set aside on the short ground that the learned arbitrator was ineligible to act. He refers me to a communication dated 16.08.2019, addressed by learned counsel for the respondents herein to the learned arbitrator, pointing out that the learned arbitrator has been appointed by the Law Secretary, Government of India, who himself falls within the category of "consultant/advisor" to the respondents under Entry 1 of the Signature Not Verified Digitally Signed By:SHITU NAGPAL O.M.P. (COMM) 519/2019 Page 1 of 2 Signing Date:25.01.2023 19:58:21 Fifth Schedule to the Arbitration and Conciliation Act, 1996, thus rendering any appointment made by him void ab initio. This communication was forwarded by the learned arbitrator to learned counsel for the petitioner on 20.08.2019.
4. By an order dated 21.08.2019, the learned arbitrator identified certain questions which arise in the application which would require a decision after hearing the parties. However, in view of the limited time left for making the award, learned arbitrator decided to sign the award leaving it to the parties to take such action as they may be advised.
5. Mr. Mehra also submits that in these circumstances, the arbitral award is also vitiated by unilateral appointment of the arbitrator, as held by the judgments of the Division Bench of this Court in Ram Kumar and Anr. vs. Shriram Transport Finance Co. Ltd. [judgment dated 05.12.2022 in FAO(COMM) 60/2021] and Govind Singh vs. M/s Satya Group Pvt. Ltd. & Anr. [judgment dated 06.01.2023 in FAO(COMM) 136/2022].
6. Learned counsel for the respondents is requested to take instructions on the above aspects and assist the Court on the next date of hearing.
7. List on 23.02.2023.
PRATEEK JALAN, J JANUARY 24, 2023 'vp'/ Signature Not Verified Digitally Signed By:SHITU NAGPAL O.M.P. (COMM) 519/2019 Page 2 of 2 Signing Date:25.01.2023 19:58:21