Delhi High Court - Orders
Sree Shiva Durga Cashew Products And Anr vs Infinity Fincorp Solutions on 23 July, 2024
Author: Prateek Jalan
Bench: Prateek Jalan
$~27
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P. (COMM) 349/2022, I.A. 13324/2022 & I.A. 13326/2022
SREE SHIVA DURGA CASHEW
PRODUCTS AND ANR. .....Petitioners
Through: Mr. PBA Srinivasan, Mr. Sumit
Swami, Mr. V. Aravind, Ms.
Srishti Bansal, Ms. Aanchal,
Advocates.
versus
INFINITY FINCORP SOLUTIONS .....Respondent
Through: Mr. Siddhartha Chowdhury,
Advocate.
CORAM:
HON'BLE MR. JUSTICE PRATEEK JALAN
ORDER
% 23.07.2024
1. The petitioner challenges an award dated 10.12.2020, by which the learned arbitrator has adjudicated disputes between the parties under a contract dated 01.11.2017.
2. The undisputed position is that the learned arbitrator was appointed unilaterally by the respondent, by notice dated 14.10.2019.
3. The question of validity of the award passed by an arbitrator appointed by one party unilaterally is no longer res integra. The judgments of the Supreme Court in TRF Limited vs. Energo Engineering Projects Limited [(2017) 8 SCC 377] and Perkins Eastman Architects DPC vs. HSCC (India) Limited [(2020) 20 SCC 760], as also followed by O.M.P. (COMM) 349/2022 Page 1 of 3 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 25/07/2024 at 02:47:05 Division Bench decisions of this Court in Ram Kumar vs. Shriram Transport Finance Co. Ltd. [2022 SCC OnLine Del 4268] and Govind Singh vs. Satya Group Pvt. Ltd. [2023 SCC OnLine Del 37], make it clear that such an award is void ab initio and unenforceable.
4. In view of the above, the impugned award dated 10.12.2020 is set aside.
5. At the request of learned counsel for the parties, the following further decisions are passed in the interest of expeditious resolution of the disputes.
A. Disputes under the contract dated 01.11.2017 are referred to arbitration of Hon'ble Mr. Justice Sanjib Banerjee, former Chief Justice, High Court of Madras and Meghalaya [Tel: 9836268256]. The learned arbitrator is requested to furnish a declaration under Section 12 of the Act, prior to entering upon the reference. B. The arbitration will be held under the aegis of Delhi International Arbitration Centre, Delhi High Court, Shershah Road, New Delhi- 110503 ["DIAC"], and will be governed by the Rules of DIAC, including as to the remuneration of the learned arbitrator. C. The statement of claim, filed by the respondent herein before the erstwhile arbitrator, may be placed before the learned arbitrator appointed today.
D. As the petitioner herein had not filed a statement of defence before the erstwhile arbitrator, it may do so within two weeks from today or as soon as the learned arbitrator enters into reference, whichever is later.
E. The parties assure the Court that they will cooperate with the O.M.P. (COMM) 349/2022 Page 2 of 3 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 25/07/2024 at 02:47:05 learned arbitrator for expeditious conclusion of the proceedings.
6. The petition, alongwith pending applications, is disposed of with the above directions.
PRATEEK JALAN, J JULY 23, 2024 SS/ O.M.P. (COMM) 349/2022 Page 3 of 3 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 25/07/2024 at 02:47:07