Delhi High Court - Orders
M/S Jai Ambey Construction Co vs Union Of India on 15 April, 2024
Author: Prateek Jalan
Bench: Prateek Jalan
$~30
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P.(I) (COMM.) 112/2024 & I.As. 8370-71/2024.
M/S JAI AMBEY CONSTRUCTION CO. ..... Petitioner
Through: Ms. Amrita Panda, Mr. Udbhav
Gady, Mr. Ojaswa Pathak,
Advocates.
versus
UNION OF INDIA ..... Respondent
Through: Mr. Shashank Bajpai, Advocate.
Mr. Vedansh Anand, Advocate.
CORAM:
HON'BLE MR. JUSTICE PRATEEK JALAN
ORDER
% 15.04.2024
1. The petitioner has filed this petition under Section 9 of the Arbitration and Conciliation Act, 1996 ["the Act"], for interim measures of protection in anticipation of arbitral proceedings under a contract, i.e. "CA NO: CEWAC/HAL/02/2018-19: PROVN OF CERTAIN ALLIED BUILDING & SERVICES AT AF STN HALWAR (TENDER-II)" allotted by letter dated 17.04.2018. The petitioner seeks stay of operation of a letter dated 11.03.2023, by which the contract has been cancelled.
2. Mr. Shashank Bajpai, learned counsel, appears on behalf of the respondent. The matter was passed over on first call to enable him to take instructions.
3. On second call, learned counsel for both parties agree that the O.M.P.(I) (COMM.) 112/2024 Page 1 of 3 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/04/2024 at 01:08:23 disputes raised in this petition may be referred to arbitration, and the relief sought in this petition under Section 9 of the Act may be considered by the learned Arbitrator under Section 17 of the Act.
4. The arbitration clause [Clause 70 of the General Conditions of Contract] provides for arbitration of a sole arbitrator, being a serving officer having a degree in Engineering or equivalent, or having passed final/direct final examination of sub-division II of Institution of Surveyor (India) recognized by the Government of India.
5. Mr. Bajpai states that the respondent maintains a panel of arbitrators, from which the arbitrator may be appointed.
6. The appointment of a serving officer of the Union of India is impermissible, in view of the qualifications prescribed under Section 12 of the Act, read with the schedules thereto. However, it is deemed appropriate that an independent person having the qualifications mentioned in the arbitration agreement, i.e., a decree in Engineering or equivalent, be appointed.
7. With the consent of learned counsel for the parties, the petition, alongwith pending applications, is disposed of with the following directions:
A. The disputes between the parties are referred to arbitration under the aegis of Delhi International Arbitration Centre, Shershah Road, New Delhi-110503 [DIAC]. DIAC is requested to nominate a person having a degree in Engineering or equivalent from its panel to serve as the sole arbitrator.
B. The arbitration will be governed by the Rules of DIAC, including as to the remuneration of the learned arbitrator.O.M.P.(I) (COMM.) 112/2024 Page 2 of 3
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/04/2024 at 01:08:23 C. The learned arbitrator is requested to furnish a declaration under Section 12 of the Act, prior to entering upon the reference. D. The present petition will be treated as an application under Section 17 of the Act before the learned arbitrator.
E. The respondent may file its reply to the application within two weeks from today or immediately upon the learned arbitrator entering into reference, whichever is later.
F. The parties may request the learned arbitrator to consider the Section 17 application expeditiously, at least for the purpose of interim orders.
8. It is made clear that this Court has not expressed any opinion on the merits of the dispute, or the petitioner's claim for interim measures of protection. These aspects are left open for consideration by the learned arbitrator, in accordance with law.
PRATEEK JALAN, J APRIL 15, 2024 'Bhupi'/ O.M.P.(I) (COMM.) 112/2024 Page 3 of 3 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/04/2024 at 01:08:23