Delhi High Court - Orders
Manmohan Bhatnagar vs Arg Co Llp & Ors on 24 August, 2022
Author: Anup Jairam Bhambhani
Bench: Anup Jairam Bhambhani
$~7
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ARB.P. 799/2020
MANMOHAN BHATNAGAR ..... Petitioner
Through: Mr. A.S. Puar, Advocate via video
conferencing.
versus
ARG CO LLP & ORS. ..... Respondents
Through: Mr. Dharav Shah with Mr. Pranaya
Goyal, Advocates.
CORAM:
HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI
ORDER
% 24.08.2022 By way of the present petition under section 11(6) 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 respondents from Limited Liability Partnership Agreement dated 13.07.2016 ('Agreement' for short).
2. Mr. A.S. Puar, learned counsel for the petitioner has drawn the attention of this court to clause 19 of the Agreement, which comprises the arbitration agreement; and contemplates reference of disputes between the parties to arbitration in accordance with the A&C Act.
3. It is noticed that though the Agreement does not contain any specific provision relating to territorial jurisdiction, it is the admitted position that the Agreement was entered into between the parties at New Delhi; and that the petitioner as well as the respondents are all residents of New Delhi. Accordingly, courts of law at New Delhi would have territorial jurisdiction over all matters and disputes arising Signature Not Verified Digitally Signed By:NEERAJ Signing Date:26.08.2022 ARB.P. 799/2020 Page 1 of 4 15:09:34 from the Agreement in accordance with section 20 of the Code of Civil Procedure, 1908.
4. Learned counsel for the petitioner further submits that vide Demand-
cum-Invocation Notice dated 27.07.2020, the petitioner raised his disputes and demands upon the respondents and also invoked the arbitral mechanism; to which the respondents sent a reply dated 02.11.2020.
5. Notice on this petition was issued on 22.12.2020; consequent to which the respondents filed their reply dated 07.04.2021; whereafter, the petitioner filed rejoinder dated 20.07.2021.
6. In their reply, the respondents have taken certain objections relating to the merits of the disputes that have arisen between the parties. However, learned counsel appearing for the respondents submits that since the disputes between the parties arise from a partnership agreement, the respondents are desirous that the parties should attempt an amicable resolution of their inter-se disputes through mediation. Counsel also fairly submits, that the respondents are not opposed to reference of disputes to arbitration if mediation were to fail.
7. Upon a conspectus of the averments contained in the petition, the stand taken by the respondents 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 Signature Not Verified Digitally Signed By:NEERAJ Signing Date:26.08.2022 ARB.P. 799/2020 Page 2 of 4 15:09:34 in demand-cum-invocation notice dated 27.07.2020 do not appear ex- facie to be non-arbitrable.
8. Accordingly, the present petition is allowed.
9. Furthermore, as requested by learned counsel for the parties, they are referred to arbitration under the aegis of Delhi International Arbitration Centre, New Delhi ('DIAC' for short); with a direction to the Coordinator of the DIAC to appoint a learned Sole Arbitrator in the matter, after taking necessary disclosures as required under section 12 of the A&C Act; and subject to such arbitrator's fee and a arbitral costs as are provided in the rules and regulations of the DIAC.
10. Parties shall share the arbitrator's fee and arbitral costs, equally.
11. All rights and contentions of the parties in relation to the claims/counter-claims are left open, to be decided by the learned Sole Arbitrator on their merits, in accordance with law.
12. In deference to the request of the parties for first attempting an amicable resolution of their disputes through mediation however, the appointment of the learned Sole Arbitrator is held in abeyance for 02 months from today, affording to the parties sufficient time to attempt an amicable resolution of their inter-se disputes.
13. As requested, to attempt an amicable resolution of the disputes, parties are referred to mediation before the Delhi High Court Mediation & Conciliation Centre, with a request to the learned Organizing Secretary of the Mediation Centre to appoint an appropriate mediator in the matter.
14. Let the parties approach the Mediation Centre on Monday i.e. 29th August 2022 at 02:30 p.m. for the purpose.
Signature Not Verified Digitally Signed By:NEERAJ Signing Date:26.08.2022 ARB.P. 799/2020 Page 3 of 4 15:09:3415. A copy of this order be sent to the learned Organizing Secretary of the Mediation Centre, for information and compliance.
16. Parties are directed to sincerely attempt settlement of their inter-se disputes through mediation within two months from today; and in the event that settlement does not fructify within the said period, to approach the DIAC within 10 days after the aforesaid two-month period.
17. A copy of this order be also sent to the Coordinator, DIAC for information and compliance.
18. The petition stands disposed of in the above terms.
19. Other pending applications, if any, also stand disposed of.
ANUP JAIRAM BHAMBHANI, J AUGUST 24, 2022 ds Signature Not Verified Digitally Signed By:NEERAJ Signing Date:26.08.2022 ARB.P. 799/2020 Page 4 of 4 15:09:34