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Delhi High Court - Orders

(13) Star Wire (India) Ltd vs United India Insurance Co. Ltd on 26 September, 2023

Author: Sachin Datta

Bench: Sachin Datta

                                    $~13 and 14
                                    *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                                    +    ARB.P. 151/2022
                                    (13) STAR WIRE (INDIA) LTD.                                                                     ..... Petitioner
                                                         Through:                                              Mr. Sidharth Joshi, Mr. Ambareen
                                                                                                               and Mr. Amit, Advs.
                                                              versus
                                                UNITED INDIA INSURANCE CO. LTD.         ..... Respondent
                                                              Through: Mr. A. K. De, Adv. (through VC)

                                    +    O.M.P. (T) (COMM.) 25/2022 & IA No. 6140/2022
                                    (14) UNITED INDIA INSURANCE CO. LTD.                 ..... Petitioner
                                                        Through: Mr. A. K. De, Adv. (through VC)
                                                        versus
                                         STAR WIRE (INDIA) LTD.                         ..... Respondent
                                                        Through: Mr. Sidharth Joshi, Mr. Ambareen
                                                                    and Mr. Amit, Advs.
                                         CORAM:
                                         HON'BLE MR. JUSTICE SACHIN DATTA
                                                        ORDER

% 26.09.2023 ARB.P. 151/2022 & O.M.P. (T) (COMM.) 25/2022

1. Vide order dated 18.07.2023, it was, inter alia, recorded as under:-

"1. During the course of arguments, Mr. A. K. De, learned counsel for 'United India Insurance Co. Ltd.' has drawn attention towards a letter dated 10.11.2021 addressed by 'M/s Star Wire (India) Ltd.', inter-alia, stating as under:

"it is a matter of regret that even after 12 days from our letter dated 27.10.2011, requesting for appointment of Alternate Arbitrator, there is no response from your end. Kindly be informed that in case you fail to appoint your Arbitrator within 10 days from receipt of our letter, we shall be constrained to approach Honourable High Court for appointment of Sole Arbitrator, under Section 11(6) of Arbitration and conciliation Act."

2. On the basis of the aforesaid letter, it is submitted by Mr. A.K. De, learned counsel for the defendants that the petitioner has already 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 28/09/2023 at 01:31:02 given its consent to appoint a Sole Arbitrator to adjudicate the disputes between the parties.

3. Attention has also been drawn to the various proceedings of the arbitral tribunal to contend that there has been de-facto inability on the part of the arbitral tribunal to discharge its mandate. It is also contended that there have been significant infractions of the principles of natural justice on the part of arbitral tribunal.

4. Learned counsel for 'M/s Star Wire (India) Ltd.' seeks some time to take instructions as to whether a Sole Arbitrator can be appointed to adjudicate the disputes between the parties."

2. Today, learned counsel for Star Wire (India) Ltd. submits that he has no objection to an independent sole Arbitrator being appointed by this Court to adjudicate the disputes between the parties. The same request is also made by Mr. A. K. De, learned counsel appearing for United India Insurance Co. Ltd.

3. Accordingly, with the consent of the parties, the mandate of existing arbitral tribunal is terminated.

4. Further, Mr. Justice (Retd.) R.K. Gauba, Former Judge, Delhi High Court, (Mob. No.9650411919) is appointed as the Sole Arbitrator to adjudicate the disputes between the parties.

5. Respective counsel for the parties are in agreement that the proceedings before the learned sole Arbitrator shall proceed from the stage at which the matter stood before the previous arbitral tribunal.

6. The learned sole Arbitrator shall give full opportunity of hearing to the respective counsel for the parties to present their case and shall also consider the pending applications already filed on behalf of the parties.

7. The learned Sole Arbitrator may proceed with arbitration proceedings subject to furnishing to the parties requisite disclosures as required under 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 28/09/2023 at 01:31:02 Section 12 of the A & C Act; and in the event of there being any impediment to the appointment on that count, the parties are given liberty to file an appropriate application in this Court.

8. The learned Sole Arbitrator shall be entitled to fee in accordance with Fourth Schedule to the A & C Act; or as may otherwise be agreed to between the parties and the learned Sole Arbitrator.

9. Parties shall share the arbitrator‟s fee and arbitral costs, equally.

10. All rights and contentions of the parties in relation to the claims/counter-claims are kept open, to be decided by the learned Arbitrator on their merits, in accordance with law.

11. Needless to say, nothing in this order shall be construed as an expression of opinion of this court on the merits of the contentions of the parties.

12. The present petitions stand disposed of in the above terms.

SACHIN DATTA, J SEPTEMBER 26, 2023/r 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 28/09/2023 at 01:31:03