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Jindal Saw Limited vs M .A. Zahid on 23 March, 2022

Author: Sanjeev Narula

Bench: Sanjeev Narula

                          $~3
                          *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +     ARB. A. (COMM.) 10/2020
                                JINDAL SAW LIMITED                             ..... Appellant
                                               Through: Mr. Nidhesh Gupta, Senior Advocate
                                                        with Mr. Preeti Goel and Ms. Pallavi
                                                        Singh, Advocates.

                                                    versus

                                M .A. ZAHID                                        ..... Respondent
                                                    Through:    Mr. Amit Pai and Mr. Rahat Bansal,
                                                                Advocates.

                                CORAM:
                                HON'BLE MR. JUSTICE SANJEEV NARULA
                                        ORDER

% 23.03.2022

1. The present appeal under Section 37(2)(a) of the Arbitration and Conciliation Act, 1996 [hereinafter "the Act"] impugns Order dated 15th October, 2019 whereby the Ld. Arbitrator has held that no cause of action is accrued in favour of the Claimant and consequently, no arbitrable disputes arose for adjudication. Having observed as such, the Ld. Tribunal rejected the Statement of Claim holding it to be premature.

2. On hearing submissions of the parties, this Court vide Order dated 07th January, 2022 directed the Respondent to file an affidavit disclosing all his assets (including bank accounts); the status of the Income Tax attachments pertaining to his bank accounts and properties; and also indicate whether, subsequent to the execution of the Settlement Agreement dated 22 nd July, 2013, the Respondent has alienated any of his assets or closed any of his Signature Not Verified Digitally Signed By:SAPNA SETHI ARB. A. (COMM.) 10/2020 Page 1 of 4 Signing Date:25.03.2022 10:58:09 bank accounts, if so, details of transaction(s) be produced.

3. The afore-noted direction to file the affidavit has not been complied with till date.

4. Today, at the outset, Mr. Amit Pai, counsel for the Respondent, on instructions, states the following: -

(a) The Respondent does not wish to oppose the instant appeal and the Court can set-aside the impugned order and refer the parties back to arbitration. Any independent Arbitrator be appointed by this Court for adjudication of disputes.

(b) The Respondent would also like to attempt to resolve the matters amicably through settlement talks.

(c) The direction qua filing of affidavit issued by this Court vide Order dated 07th January, 2022 would be complied with, in case the parties are unable to resolve the disputes amicably, suitable time be granted to comply with the directions.

5. Mr. Nidhesh Gupta, Senior Counsel for the Appellant along with Ms. Preeti Goel, briefing counsel, on instructions, states that Appellant has no objection to appointment for an independent Sole Arbitrator by the Court. Further, he submits that the Appellant is also agreeable to explore mediation. Mr. Gupta, however, insists that the Respondent should be directed to file the affidavit in compliance with the afore-said Order.

6. In view of the foregoing, since there is a consensus between the Signature Not Verified Digitally Signed By:SAPNA SETHI ARB. A. (COMM.) 10/2020 Page 2 of 4 Signing Date:25.03.2022 10:58:09 parties - the impugned Order dated 15th October, 2019 is set-aside.

7. Now, the arbitral proceedings have to re-commence and accordingly, Hon'ble Mr. Justice Rajiv Sahai Endlaw (Retd.), former Judge of this Court [Contact No.: +91 9717495002] is appointed as the Sole Arbitrator for adjudication of disputes which were pending consideration before the Ld. erstwhile Arbitrator.

8. The parties are directed to appear before the Ld. Sole Arbitrator as and when notified. This is subject to the Ld. Arbitrator making necessary disclosure(s) under Section 12(1) of the Act and not being ineligible under Section 12(5) of the Act.

9. The Ld. Arbitrator will be entitled to charge his fee in terms of the provisions of the Fourth Schedule appended to the Act.

10. It is clarified that the Court has not examined any of the claims of the parties and all rights and contentions on merits are left open. Both the parties shall be free to raise their claims/ counter claims before the Ld. Arbitrator in accordance with law.

11. That the Ld. Arbitrator shall enter upon reference after a period of three weeks from today, within which time the parties can explore mediation. For this purpose, the parties shall appear before the Delhi High Court Mediation and Conciliation Centre on 31st March, 2022.

Signature Not Verified Digitally Signed By:SAPNA SETHI ARB. A. (COMM.) 10/2020 Page 3 of 4 Signing Date:25.03.2022 10:58:09

12. In case the parties are unable to resolve their disputes, the Ld. Arbitrator shall enter upon reference and the Respondent shall file the affidavit as directed vide Order dated 07th January, 2022, within a period of two weeks from the date the Ld. Arbitrator enters upon reference.

13. With the foregoing directions, the present appeal is disposed of.

SANJEEV NARULA, J MARCH 23, 2022 d.negi Signature Not Verified Digitally Signed By:SAPNA SETHI ARB. A. (COMM.) 10/2020 Page 4 of 4 Signing Date:25.03.2022 10:58:09