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Servotech Electricals Pvt Ltd vs Logix Infrastructure Pvt Ltd on 30 August, 2022

Author: Anup Jairam Bhambhani

Bench: Anup Jairam Bhambhani

                          $~2

                          *      IN THE HIGH COURT OF DELHI AT NEW DELHI

                          +      ARB.P. 733/2020
                                 SERVOTECH ELECTRICALS PVT LTD               ..... Petitioner
                                                 Through: Mr. Rakesh Kumar, Advocate.
                                                 versus
                                 LOGIX INFRASTRUCTURE PVT LTD             ..... Respondent
                                                 Through:
                                 CORAM:
                                 HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI
                                                 ORDER

% 30.08.2022 I.A.11698/2020 (Exemption) Exemption granted, subject to just exceptions. Let requisite compliances be made within 01 week. Application stands disposed of.

This petition has been pending since 09.12.2020, on which date notice was issued on it.

2. By way of the present petition under section 11 of the Arbitration & Conciliation Act 1996 ('A&C Act' for short) the petitioner seeks appointment of an arbitrator to adjudicate upon the disputes that are stated to have arisen with the respondent from Letter of Intent dated 27.11.2012 and the Tender Document attached to it.

3. By order dated 17.08.2022, fresh notice was directed to be sent to the respondent, returnable for today i.e. 30.08.2022.

4. Although the office report indicates otherwise, learned counsel for the petitioner has filed an affidavit of service dated 29.08.2022, which Signature Not Verified Digitally Signed By:SUNITA RAWAT Signing Date:01.09.2022 ARB.P. 733/2020 Page 1 of 4 16:26:44 affidavit though, is not yet on record. A copy of the affidavit of service has been handed-up in court. The affidavit of service be taken on record.

5. The affidavit of service indicates that service on the respondent has been effected on multiple e-mail addresses and also by speed post, as evidenced by the documents annexed to the affidavit.

6. However, no one is present on behalf of the respondent; nor has any reply been filed in the matter.

7. In view of the above, this court is satisfied that the respondent has been served in the matter but has chosen not to be represented.

8. Accordingly, the respondent is set ex-parte.

9. Learned counsel for the petitioner has drawn attention to clause 11.2 of the General Conditions of Contract, which forms part of the tender document, and which govern the Letter of Intent which has been signed by the parties and comprises the agreement between them.

10. As per the record, the petitioner invoked arbitration vide Notice dated 09.08.2019; to which the respondent sent no reply.

11. Although there is no specific provision relating to territorial jurisdiction in respect of the disputes between the parties, learned counsel appearing for the petitioner submits that, as has been averred in the petition, the registered office of the respondent is situate at Delhi; the Letter of Intent that forms the basis of the transaction was issued to the petitioner at Delhi; and therefore, in accordance with section 20 of the Code of Civil Procedure 1908, at least a part of the cause of action for the matter has arisen in Delhi.

12. Upon a conspectus of the averments contained in the petition and the submissions made, this court is satisfied that there is a valid and subsisting arbitration agreement between the parties; that this court has territorial jurisdiction to entertain and decide the present petition; and also that the disputes that are stated to have arisen between the parties as set-out inter-alia in invocation notice dated 09.08.2019 do not appear ex-facie to be non-arbitrable.

13. Accordingly, the present petition is allowed and Ms. Pooja Mehra Saigal, Advocate (Cellphone No. : +91 9810137113) is appointed as the learned Sole Arbitrator to adjudicate upon the disputes between the parties.

14. The learned Sole Arbitrator may proceed with the arbitral proceedings subject to furnishing to the parties requisite disclosures as required under section 12 of the A&C Act; and in the event there is any impediment to the appointment on that count, the parties are given liberty to file an appropriate application in this court.

15. 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.

16. Parties shall share the arbitrator's fee and arbitral costs, equally.

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

18. Parties are directed to approach the learned Sole Arbitrator appointed within 10 days.

19. The petition stands disposed of in the above terms.

20. Other pending applications, if any, also stand disposed of.

21. A copy of this order be sent by the Registry to the respondent on their e-mail IDs available on record.

ANUP JAIRAM BHAMBHANI, J.

AUGUST 30, 2022/uj Signature Not Verified Digitally Signed By:SUNITA RAWAT Signing Date:01.09.2022 ARB.P. 733/2020 Page 4 of 4 16:26:44