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Medzak Healthcare Pvt. Ltd vs Riosh Technologies Pvt. Ltd on 27 April, 2022

Author: Vibhu Bakhru

Bench: Vibhu Bakhru

                          $~2(2022)
                          *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +     ARB.P. 385/2022 & IA 4754/2022
                                MEDZAK HEALTHCARE PVT. LTD.                         ..... Petitioner
                                                    Through: Mr Akash Nagar, Ms Ruchi Bhargarh
                                                    Nagar, Advocates.

                                                    versus

                                RIOSH TECHNOLOGIES PVT. LTD.                        ..... Respondent
                                                    Through: Mr Saurabh Chandda, Advocate with
                                                    Mr Rohit Bhagat, Advocate.

                                CORAM:
                                HON'BLE MR. JUSTICE VIBHU BAKHRU
                                                    ORDER

% 27.04.2022

1. The petitioner has filed the present petition under Section 11 of the Arbitration and Conciliation Act, 1996 (hereafter 'the A&C Act') praying that an Arbitrator be appointed to adjudicate the disputes that have arisen between the parties.

2. The petitioner claims that the parties had entered into an Agreement for designing, developing, testing of electronic aspects of the petitioner's integrated invention 'MedX', an integrated diagnostic invention, which according to the petitioner was capable of imaging various medical features of patients through a compatible camera and further, displaying the same on a Thin Film Transistor (TFT) Screen. It is stated that the parties had entered into a Non-Disclosure Agreement and further, the respondent had also Signature Not Verified Digitally Signed By:Dushyant Rawal Signing Date:02.05.2022 drafted a Statement of Work, which governed the contractual arrangement. It is stated that the respondent has failed to perform the obligations under the Statement of Work and also breached the Non-Disclosure Agreement. The petitioner states that the parties had also endeavoured to resolve their disputes amicably, however, they were unsuccessful.

3. In view of the disputes between the parties, the petitioner issued a notice dated 18.01.2022 under Section 21 of the A&C Act invoking the Arbitration Agreement under the Non-Disclosure Agreement. The respondent responded to the said notice rejecting the request for concurring on the appointment of an arbitrator.

4. The Non-Disclosure Agreement includes an Arbitration Clause that reads as under: -

"12. Disputes This Agreement shall be governed by the laws of India and shall be subject to the exclusive jurisdiction of New Delhi, India. All disputes arising out of this Agreement will be subject to the exclusive jurisdiction and venue of the courts located at New Delhi, India. Any dispute relating or arising in respect of any matter hereunder, sought to be resolved by amicable mutual discussions and in the event that such resolution eludes the Parties for more than thirty days, the dispute shall be referred to Conciliation or Arbitration at suitable Centre for Arbitration in New Delhi, India."

5. The learned counsel appearing for the respondent does not dispute that the parties had entered into the Non-Disclosure Agreement or that an Signature Not Verified Digitally Signed By:Dushyant Rawal Signing Date:02.05.2022 Arbitration Agreement exists between the parties. He states that the disputes sought to be raised by the petitioner do not fall within the scope of the Arbitration Clause and are not arbitrable. The learned counsel for the respondent disputes that the petitioner has any legitimate grievance.

6. The learned counsel for the petitioner states that the disputes in the present case relate to the Non-Disclosure Agreement. In terms of the said Agreement, the respondent is obliged to protect the confidential information as well as other material relating to the inventory. He states that any material provided by the petitioner was also required to be returned under the Non- Disclosure Agreement. He further submits that in addition, there are certain monetary claims, which are intrinsically connected with the breach of the Non-Disclosure Agreement.

7. At this stage, this Court is not required to finally examine the question whether all disputes as raised by the petitioner are arbitrable. The scope of Section 11 of the A&C Act is confined to the existence of the Arbitration Agreement. Considering that there is no dispute as to the existence of the Arbitration Agreement, this Court considers it apposite to allow the present petition.

8. Accordingly, Mr Sudhir K. Makkar, Senior Advocate (Mob:

9811082712) is appointed as an Arbitrator to adjudicate the disputes between the parties. This is subject to the learned Arbitrator making the necessary disclosure as required under Section 12(1) of the A&C Act and not being ineligible under Section 12(5) of the A&C Act.

9. The parties are at liberty to approach the learned Arbitrator for further proceedings.

10. It is clarified that all rights and contentions of the parties are reserved including as to the question whether the disputes sought to be raised are arbitrable.

VIBHU BAKHRU, J APRIL 27, 2022 pkv Click here to check corrigendum, if any Signature Not Verified Digitally Signed By:Dushyant Rawal Signing Date:02.05.2022