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Servotech Electricals Pvt Ltd vs Magnum International Trading Company ... on 15 February, 2022

Author: Vibhu Bakhru

Bench: Vibhu Bakhru

                          $~11(2022)
                          *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +    O.M.P. (T) (COMM.) 24/2022
                               SERVOTECH ELECTRICALS PVT LTD                  ..... Petitioner
                                                 Through    Mr. Rakesh Kumar, Adv.
                                                         Versus
                               MAGNUM INTERNATIONAL TRADING COMPANY
                               PVT LTD AND ANR                                ..... Respondents
                                                 Through    Ms. Amrita Panda, Adv.
                               CORAM:
                               HON'BLE MR. JUSTICE VIBHU BAKHRU
                                           ORDER

% 15.02.2022 IA No.2538/2022 (for exemption)

1. Exemption is allowed, subject to all just exceptions.

2. The application is disposed of.

O.M.P. (T) (COMM.) 24/2022

3. The petitioner has filed the present petition under Sections 14 and 15 of the Arbitration & Conciliation Act, 1996 (hereafter the 'A&C Act') praying that the mandate of the learned Sole Arbitrator, appointed by the respondents, be terminated and an Arbitrator be appointed in his place.

4. Certain disputes have arisen between the parties in connection with the Work Order dated 05.10.2015. The petitioner had invoked the arbitration agreement as included in the Work Order dated 05.10.2015, by a notice dated 28.05.2019 issued under Section 21 of the A&C Act and had sought appointment of an Arbitrator. The respondents state that pursuant to the aforesaid notice, they had proceeded to appoint a former Judge of the Orissa High Court as the Sole Arbitrator to adjudicate the disputes between the parties.

5. The petitioner did not concur with the said appointment and filed a petition under Section 11 of the A&C Act [ARB.P. No.436/2019 captioned Servotech Electricals Pvt. Ltd. v. Magnum International Trading Co. Pvt. Ltd. & Ors.]. The said petition was taken up for hearing on 15.07.2019. However, after some arguments, the petitioner sought to withdraw the said petition and the same was dismissed as withdrawn. This Court had noted that the respondents in exercise of their right under Clause 50.3 of the Work Order dated 05.10.2015 appointed the Sole Arbitrator.

6. The petitioner states that thereafter, the petitioner received a notice from the learned Arbitrator fixing a hearing on 25.08.2019. It is stated that the Arbitral Tribunal held several hearings thereafter. The petitioner had also filed an application under Section 17 of the A&C Act, which has not been decided till date. It is stated that arguments of the petitioner on its application under Section 17 of the A&C Act were heard on 16.03.2020 and the same was thereafter adjourned at the request of the learned counsel for the respondents. The petitioner states that the arbitral proceedings have not progressed thereafter.

7. Ms. Panda, learned counsel appearing for the respondents states that the respondents also join the petitioner in praying that the mandate of the learned Sole Arbitrator be terminated. She states that the learned Arbitrator is not keeping good health and therefore would be unable to conclude the arbitral proceedings within a reasonable period of time.

8. In view of the consensus between the parties that the mandate of the learned Sole Arbitrator be terminated, this Court does not consider it apposite to examine the grounds as stated in this petition. It is well settled that arbitration rests on the consensus between the parties. In the present Signature Not Verified Digitally Signed By:Dushyant Rawal Signing Date:18.02.2022 case the parties concur that the mandate of the learned Sole Arbitrator be terminated. Thus, this Court considers it apposite to do so. Accordingly, the mandate of the learned Arbitrator unilaterally appointed by the respondents is terminated.

9. Justice (Retd.) R.K. Gauba (Mob.9650411919) is appointed as the Sole Arbitrator to adjudicate the disputes between the parties in place of learned Arbitrator appointed by the respondents.

10. This is subject to learned Sole Arbitrator making the necessary disclosure under Section 12(1) of the A&C Act and not being ineligible under Section 12(5) of the A&C Act.

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

12. The petition is allowed in the aforesaid terms.

VIBHU BAKHRU, J FEBRUARY 15, 2022 'gsr' Click here to check corrigendum, if any Signature Not Verified Digitally Signed By:Dushyant Rawal Signing Date:18.02.2022