Klj Developers Pvt. Ltd vs Anjani Kumar Rai on 16 March, 2021

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Delhi High Court - Orders

Klj Developers Pvt. Ltd vs Anjani Kumar Rai on 16 March, 2021

1. The present petition has been filed seeking transfer of eight petitions under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter, 'Section 34 petitions') pending before the ld. District Judge (Commercial Court)-01, West District, Tis Hazari Courts, Delhi to the Original Side of this Court, to be heard and disposed of along with O.M.P. (Comm.) No. 570/2020 titled M/s KLJ Developers Pvt. Ltd. v. Mr. Anjani Kumar Rai.

2. The submission of ld. Counsel for the Petitioner is that all the Section 34 petitions arise out of a single arbitral award dated 27 th May, 2020 passed by the ld. Sole Arbitrator - Justice (Retd.) Usha Mehra. Specific reference is made by Mr. Thakur, ld. Counsel to paragraph 12 of the award to argue that all the disputes were consolidated before the ld. Arbitrator on the request of the ld. Counsels and therefore, all the Section 34 petitions should be heard by one forum.

TR.P.(C.) 18/2021 Page 1 of 4

Digitally Signed By:DINESH SINGH NAYAL Signing Date:18.03.2021 19:11:56

3. Ld. counsel for the Respondent submits that the various petitions relate to separate work orders and separate references were filed in respect thereof. However, he does not dispute that before the ld. Arbitrator, the matter was consolidated. He, however, still submits that in terms of Section 12 of the Commercial Courts Act, 2015, the petition preferred before the Original Side of this Court under Section 34 itself would not be maintainable due to the lack of pecuniary jurisdiction.

4. A perusal of paragraph 12 of the arbitral award shows that all eight cases were consolidated before the ld. Arbitrator and common evidence was led. Paragraph 12 of the award reads as under:

"12. Counsel for the parties urged that since dispute in all the eight cases pertain to non payment of amount of the work done, return of retention money and escalation, therefore all eight cases be consolidated. That one reconciled statement of accounts in all eight cases was filed. They wanted to lead evidence in one case which be treated as evidence in all the 8 cases. Similarly they would address final arguments in lead case No.AA 64/17. Hence a consolidated award with regard to all the eight cases be passed. Reconciliation of statement of account of all eight cases took place on 17.03.2016 (Ex.RW1/3). It bears signature of both the parties. The dispute has narrowed down to non- payment of dues. This being a consolidated reconciliation statement of all eight cases therefore it was decided to pass one award thereby disposing of all the 8 cases. Request of the counsel for the parties was accepted."

5. The above consolidation has taken place with the consent of the parties. Considering that there is a consolidated award passed, it would be appropriate that the challenges to the said award are heard by one forum.

TR.P.(C.) 18/2021 Page 2 of 4

Digitally Signed By:DINESH SINGH NAYAL Signing Date:18.03.2021 19:11:56 This would be in line with the judgment of this Court in Gammon India Ltd. & Ors. v. National Highways Authority of India [AIR 2020 Delhi 132], wherein it has been held that it would be preferable that petitions arising out the same arbitral award be heard in the same Court, in order to avoid any factual or legal contradiction.

6. Accordingly, the following eight petitions under Section 34, pending before the ld. District Judge (Commercial Court)-01, West District, Tis Hazari Courts, Delhi be transferred to this Court, to be heard along with O.M.P. (Comm.) No. 570/2020:

i. O.M.P. (COMM.) 01/2021 titled Anjani Kumar v. KLJ Dvelopers Pvt. LTD.

ii. O.M.P. (COMM.) 02/2021 titled Anjani Kumar v. KLJ Dvelopers Pvt. LTD.

iii. O.M.P. (COMM.) 03/2021 titled Anjani Kumar v. KLJ Dvelopers Pvt. LTD.

iv. O.M.P. (COMM.) 04/2021 titled Anjani Kumar v. KLJ Dvelopers Pvt. LTD.

v. O.M.P. (COMM.) 12/2020 titled Anjani Kumar v. KLJ Dvelopers Pvt. LTD.

vi. O.M.P. (COMM.) 13/2020 titled Anjani Kumar v. KLJ Dvelopers Pvt. LTD.

vii. O.M.P. (COMM.) 14/2021 titled Anjani Kumar v. KLJ Dvelopers Pvt. LTD.

viii. O.M.P. (COMM.) 15/2020 titled Anjani Kumar v. KLJ Dvelopers Pvt. LTD.

TR.P.(C.) 18/2021 Page 3 of 4

Digitally Signed By:DINESH SINGH NAYAL Signing Date:18.03.2021 19:11:56

7. It is, however, made clear that if the objection of the Respondent as to pecuniary jurisdiction in O.M.P. (Comm.) No. 570/2020 succeeds, then all the petitions would be heard together by the same Court of competent jurisdiction.

8. With these observations, the petition and all pending applications are disposed of.

9. Let the transferred matters be listed before the appropriate bench on 18th May, 2021, along with O.M.P. (Comm.) No. 570/2020 M/s KLJ Developers Pvt. Ltd. v. Mr. Anjani Kumar Rai.

10. Copy of this order be communicated to the ld. District Judge (Commercial Court)-01, West District, Tis Hazari Courts, Delhi for necessary action.

PRATHIBA M. SINGH, J MARCH 16, 2021 dj/T TR.P.(C.) 18/2021 Page 4 of 4

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Delhi High Court - Orders