Delhi High Court - Orders
Iqbal Singh Sethi & Ors vs Prasad Ivf Clinic Pvt Limited on 9 March, 2022
Author: Vibhu Bakhru
Bench: Vibhu Bakhru
$~1(2022)
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ARB.P. 89/2022
IQBAL SINGH SETHI & ORS. ..... Petitioners
Through Mr. Kunal Kher, Adv.
Versus
PRASAD IVF CLINIC PVT LIMITED ..... Respondent
Through Mr. A.K. Singh, Adv.
CORAM:
HON'BLE MR. JUSTICE VIBHU BAKHRU
ORDER
% 09.03.2022
1. The petitioner has filed the present petition under Section 11 of the Arbitration & Conciliation Act, 1996 (hereafter the 'A&C Act') praying that an Arbitrator be appointed to adjudicate the disputes that have arisen between the parties in connection with Lease Deed dated 19.07.2017.
2. The parties had executed a registered Lease Deed whereby, the petitioner had leased out the premises being Basement & Ground Floor, 29 Paschimi Marg, Vasant Vihar, New Delhi-110057 to the respondent for a period of six years for residential use. The parties had agreed that the lease rent for the said premises would be ₹4,10,000/- per month for the first year and the same would be increased by 5% on an annual basis on the last paid rent.
3. The petitioner alleges that the respondent has been irregular in payment of the lease rent during the period 2018-19. Consequently, the petitioner terminated the Lease Deed by a legal notice dated 10.09.2019 and called upon the respondent to pay the outstanding lease rent along with further rent for the lock-in period. It is stated that some negotiations were held between the parties in July, 2019 and the petitioner agreed to reduce the Signature Not Verified Digitally Signed By:Dushyant Rawal Signing Date:15.03.2022 lease rent to ₹3,00,000/-per month for the period 15.07.2020 to 14.01.2022. However, the other terms of the Lease Agreement dated 19.07.2017 remain unamended. The petitioner states that in view of the said negotiations, it recalled the notice to terminate the lease and the same continued, albeit, modified to the extent as stated above.
4. The petitioner states that the respondent has also defaulted in payment of the lease rent. In addition, disputes have also arisen in respect of the obligations to be performed by the respondent under the Lease Deed. In view of the disputes between the parties, the petitioner had invoked the Arbitration Clause by a legal notice dated 12.11.2021 and had also suggested the name of a person to be appointed as the Sole Arbitrator.
5. The respondent responded to the said notice by a letter dated 01.12.2021. The respondent denied the allegations made against it in the legal notice and did not concur on the appointment of the concerned individual, as suggested, to be appointed as an Arbitrator. However, the respondent recommended the petitioner to approach this Court for appointment of a neutral and competent Arbitrator.
6. The Lease Deed contains an Arbitration Clause that reads as under:
"18.1 The Parties hereto have mutually agreed to and decided that any dispute that may arise from this Agreement, whether before or after the termination, of this Agreement which cannot be amicably settled within one month of receipt of written request, shall be referred to sole Arbitrator under the provisions of Arbitration and Conciliation Act, 1996 as mutually appointed by both the parties. The seat of the arbitration tribunal shall be in Delhi. This Agreement is made under and shall be construed Signature Not Verified Digitally Signed By:Dushyant Rawal Signing Date:15.03.2022 according to the laws of India. The language of the arbitration shall be the English language."
7. There is no dispute as to the existence of the arbitration agreement or that the petitioner has invoked the same. The learned counsel appearing for the respondent submits that the allegations made by the petitioner in the present case as well as in the legal notice are disputed. He states that the respondent also has certain Counter-Claims against the petitioner.
8. In view of the above, this Court considers it apposite to allow the present petition.
9. Mr. H.P. Sharma, Additional District Judge (Retd.) (Mob.:9810968693), is appointed as the Sole Arbitrator to adjudicate the disputes between the parties falling within the scope of the Arbitration Clause. This is subject to the learned Arbitrator making the necessary disclosure as required under Section 12(1) of the A&C Act and not being ineligible under Section 12(5) of the A&C Act.
10. At this stage, the learned counsels for the parties also request that arbitration be conducted under the aegis of Delhi International Arbitration Centre (DIAC) in accordance with its Rules. It is so directed.
11. The parties shall appear before the Coordinator, DIAC for further proceedings on 22.03.2022 at 11:00 AM.
12. The petition is disposed of in the aforesaid terms.
VIBHU BAKHRU, J MARCH 9, 2022 'gsr' Click here to check corrigendum, if any Signature Not Verified Digitally Signed By:Dushyant Rawal Signing Date:15.03.2022