Delhi High Court - Orders
M/S Paisalo Digital Limited vs M/S Naftogaz Constructions Limited & ... on 2 April, 2024
Author: Jasmeet Singh
Bench: Jasmeet Singh
$~3
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ARB.P. 417/2023
M/S PAISALO DIGITAL LIMITED ..... Petitioner
Through: Mr. Harshal Kumar, Adv.
versus
M/S NAFTOGAZ CONSTRUCTIONS LIMITED & ORS.
..... Respondents
Through: Mr. Siddharth Khattar, Mr. Akash
Jain, Mr. Divij Andley, Advs.
CORAM:
HON'BLE MR. JUSTICE JASMEET SINGH
ORDER
% 02.04.2024
1. This is a petition seeking appointment of the Sole Arbitrator to adjudicate the disputes between the parties from where the previous Arbitrator recuse himself and withdraw from the position of the Sole Arbitrator.
2. It is stated that between January, 2010 to August, 2010, 5 loan agreements were signed between the petitioner and the respondents for a loan totalling to ₹ 18,57,00,000/-.
3. The petitioner invoked the Arbitration Clause and an Arbitral Tribunal was constituted. Vide order dated 12.12.2022, the Sole Arbitrator recused himself from the position of the Sole Arbitrator. Hence, the present petition.
4. Mr. Khattar, learned counsel for the respondents state that since the This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/04/2024 at 01:23:57 dispute is covered by 5 loan agreements, it will be proper that 5 separate tribunals are constituted for adjudication of the disputes. He further submits that respondents have no objection if the same arbitrator is appointed.
5. It is stated that personal insolvency proceedings have been initiated against respondent No. 2 vide order dated 05.12.2023. In view of Section 96 of Insolvency and Bankruptcy Code, there is an interim moratorium against respondent No. 2. Hence for the time being, the disputes between the petitioner and the respondents except respondent No. 2 are referred for arbitration.
6. With consent of parties, it is directed that a new arbitrator will start the proceedings from the stage where the previous arbitrator had recused himself.
7. In this view of the matter, the petition is allowed with the following directions:
i) Mr. Vikas Goel, Adv. (Mob. No. 9871650222) is appointed as a Sole Arbitrator to adjudicate the disputes between the parties.
ii) The arbitration will be held under the aegis of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi hereinafter, referred to as the 'DIAC'). The remuneration of the learned Arbitrator shall be in terms of the Fourth Schedule of the Arbitration & Conciliation Act, 1996 and from the appropriate stage.
iii) The learned Arbitrator is requested to furnish a declaration in terms of Section 12 of the Act prior to entering into the reference.
iv) It is made clear that all the rights and contentions of the parties, including as to the arbitrability of any of the claim, any other preliminary objection, as well as claims on merits of the dispute of This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/04/2024 at 01:23:57 either of the parties, are left open for adjudication by the learned arbitrator.
v) The parties shall approach the learned Arbitrator within two weeks from today.
8. In case there are subsequent proceedings before the NCLT which permits the petitioner to include respondent No. 2 in arbitral proceedings, the petitioner will be at liberty to file appropriate application in this petition.
9. Granting that liberty, the petition is disposed of.
10. The order dated 05.12.2023 passed by NCLT is taken on record.
JASMEET SINGH, J APRIL 2, 2024/DM Click here to check corrigendum, if any This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/04/2024 at 01:23:58