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Navjot Kaur & Anr vs Fiitjee Limited on 25 November, 2021

Author: Sanjeev Narula

Bench: Sanjeev Narula

$~26
*       IN THE HIGH COURT OF DELHI AT NEW DELHI
+       O.M.P.(T) 3/2021
        NAVJOT KAUR & ANR.                                    ..... Petitioners
                           Through:     Mr. Divyakant Lahoti, Advocate.

                           versus

        FIITJEE LIMITED                                       ..... Respondent
                       Through:         None.

        CORAM:
        HON'BLE MR. JUSTICE SANJEEV NARULA
                ORDER

%               25.11.2021
[VIA HYBRID MODE]

I.A. 15351/2021 (for exemption from filing original documents and fair typed copies of illegible/ dim documents)

1. Exemption is granted, subject to just exceptions.

2. The Petitioners shall file legible copies of exempted documents, compliant with practice rules, before the next date of hearing.

3. Accordingly, the application stands disposed of.

O.M.P.(T) 3/2021

4. The Petitioner has filed the present petition under Section 14 and 15 of the Arbitration and Conciliation Act, 1996 [hereinafter "the Act"] seeking termination of the mandate of the Arbitrator - Sh. S.P. Dubey.

5. Mr. Divyakant Lahoti, counsel for the Petitioners contends that in terms of Clause 36 (a) of the 'Service Rules for the Employees of FIITJEE' [hereinafter "the Agreement"], although the right to appoint an Arbitrator is O.M.P.(T) 3/2021 Page 1 of 2 with the Respondent, however, such a clause cannot be implemented in view of the judgment of the Supreme Court in Perkins Eastman Architects DPC and Ors. v. HSCC (India) Ltd.1

6. It is further contended that Petitioners have raised this objection before the Arbitrator, however, the Arbitrator has not accepted the same and is continuing with the arbitral proceedings.

7. It is further argued that the Arbitrator did not disclose that he had also been appointed as an Arbitrator in another matter pertaining to the Respondent.

8. Issue notice to the Respondent by all permissible modes, upon filing of process fee, returnable on 16th February, 2022.

I.A. 15350/2021 (under Section 151 of the Code of Civil Procedure, 1908 seeking interim-stay of the Arbitration Proceedings)

9. Considering the fact that appointment of the Arbitrator has been done unilaterally by the Respondent, it is prima facie in conflict with the judgment of the Supreme Court in Perkins Eastman (supra). Thus the Arbitrator is de jure unable to perform his functions.

10. Accordingly, till the next date of hearing, proceedings before the Arbitrator shall remain stayed.

SANJEEV NARULA, J NOVEMBER 25, 2021/nd 1 AIR 2020 SC 59.