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During The Pendency Of The Petition) ... vs Sopan Projects on 1 June, 2022

Author: Anup Jairam Bhambhani

Bench: Anup Jairam Bhambhani

                          $~22
                          *      IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +      O.M.P. (COMM) 250/2022 & I.A. 9149/2022 (seeking interim relief
                                 during the pendency of the petition)

                                 GREAT EASTERN ENERGY CORPORATION LIMITED
                                                                                    ..... Petitioner
                                                    Through:       Mr. Rajeev Nayar, Senior Advocate
                                                                   with Mr. Aseem Chaturvedi and Mr.
                                                                   Shivank Diddi, Advocates.
                                                    versus

                                 SOPAN PROJECTS                                     ..... Respondent
                                              Through:             Mr. V. Seshagiri with Mr. Adhish
                                                                   Rajvanshi and Ms. Prachi Jain,
                                                                   Advocates.

                                 CORAM:
                                 HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI
                                              ORDER

% 01.06.2022 I.A. 9150/2022(exemption) Exemption granted, subject to just exceptions. Let requisite compliances be made within 01 week. Application stands disposed of.

O.M.P. (COMM) 250/2022 By way of the present petition filed under section 34 of the Arbitration & Conciliation Act, 1996 ('A&C Act'), the petitioner impugns award dated 25.03.2022 rendered by the learned Sole Arbitrator. Mr. Rajeev Nayar, learned senior counsel appearing on behalf of the petitioner submits that the principal ground of challenge Signature Not Verified Digitally Signed By:SUNITA RAWAT Signing Date:02.06.2022 O.M.P. (COMM) 250/2022 Page 1 of 3 15:58:25 is that though statement of claims was filed in the arbitral proceedings on 07.08.2016; and award was reserved on 10.01.2019, with no other hearing held thereafter, the arbitral award was rendered more than 3 years later on 25.03.2022. Mr. Nayar draws attention to the judgments in Harji Engg. Works. Pvt.. Ltd. vs. M/s Bharat Heavy Electricals Ltd. & Anr. reported as 2008 SCC OnLine Del 1080; Gian Gupta vs. MMTC Ltd. reported as 2020 SCC OnLine Del 107; and Director General, Central Reserve Police Force vs. Fibroplast Marine Pvt. Ltd. reported as 2022 SCC OnLine Del 1335, which appear to clearly lay down the principle that inordinate and unexplained delay in rendering an arbitral award makes the arbitral award amenable to being set-aside.

2. Mr. Nayar has taken the court through the aforesaid judgments.

3. Upon a conspectus of the averments contained in the petition and the submissions made, issue notice on the petition.

4. Mr. V. Seshagiri, learned counsel appears for the respondent on advance copy; accepts notice; and seeks time to file reply.

5. Mr. Seshagiri submits that arbitration in the present case was invoked prior to the amendment of the A&C Act in 2015; and the delay was on account of impediments in functioning due to the Covid-19 pandemic.

6. Let reply be filed within 06 (six) weeks; rejoinder thereto, if any, be filed within 04 (four) weeks thereafter; with copies to the opposing counsel.

7. List on 1st September 2022.

8. Considering the consistent view taken by Co-ordinate Benches of this court on the issue, as cited above, it is directed that the operation of the arbitral award shall remain stayed, till the next date of hearing.

ANUP JAIRAM BHAMBHANI, J JUNE 1, 2022 ds Signature Not Verified Digitally Signed By:SUNITA RAWAT Signing Date:02.06.2022 O.M.P. (COMM) 250/2022 Page 3 of 3 15:58:25