Delhi High Court - Orders
Power Grid Corporation Of India Limited vs Deepak Cables (India) Limited (In Liq) on 24 January, 2022
Author: C. Hari Shankar
Bench: C. Hari Shankar
$~24
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P. (T) (COMM.) 125/2021 & IA No. 1044/2022 (for stay),
16096-97/2022
POWER GRID CORPORATION OF INDIA LIMITED
..... Petitioner
Through : Mr. Parag P. Tripathi, Sr. Adv.
with Mr.Joshua Samuel,
Mr.Maruthi S.H., Mr.Rajat
Agnihotri, Advs.
versus
DEEPAK CABLES (INDIA) LIMITED (IN LIQ)
..... Respondent
Through : Mr. Aditya Verma and
Ms.Priyamvada Mishra, Advs.
CORAM:
HON'BLE MR. JUSTICE C. HARI SHANKAR
ORDER
% 24.01.2022
(Video-Conferencing)
IA 1044/2022 (for stay of arbitral proceedings)
1. Mr. Parag Tripathi, learned Senior Counsel for the petitioner has drawn my attention to the application dated 29th October, 2021, filed by the respondent before the learned Arbitrator, for a direction to the petitioner to deposit arbitral fees in terms of the Fourth Schedule of the Arbitration & Conciliation Act, 1996 (the 1996 Act). He points out that, on receipt of the said application, the petitioner, vide Memo dated 4th Signature Not Verified Digitally Signed OMP(T)(COMM) 125/2021 Page 1 of 3 By:SUNIL SINGH NEGI Signing Date:28.01.2022 21:45:40 November, 2021 (page 113 of the documents filed with petition), sought four weeks' time to file a detailed reply to the application. The learned Arbitrator, however, proceeded to decide the application by order dated 10th November, 2021 (page 25 of the documents), granting the prayer in the application for fixing of the arbitral fees in accordance with the Fourth Schedule to the 1996 Act.
2. Mr. Tripathi submits that the learned Arbitrator apparently proceeded without being conscious of the fact that there was a request on the part of the petitioner seeking time to respond to the application filed by the respondent for fixation of fees as per the Fourth Schedule to the 1996 Act.
3. Mr Tripathi further points out that earlier, when five cases were being consolidated and taken up together, the consolidated fees had been fixed by the learned Arbitrator by agreement between the parties. No doubt, thereafter, the proceedings in four of the said cases were stayed by this court by order dated 4th December, 2018 in CM (Main) No. 1429- 1432/2018, whereafter only one proceeding survived, of which the learned Arbitrator continues to be in seisin. In the said proceedings, counter claims were filed by the respondent, whereafter, the respondent filed the application, noted supra, for fixation of arbitration fees in accordance with the Fourth Schedule to the 1996 Act. Mr. Tripathi submits that before doing so, the learned Arbitrator ought to have granted an opportunity of hearing to the petitioner, especially as fees in the five consolidated matters had been fixed by agreement between the parties, Signature Not Verified Digitally Signed OMP(T)(COMM) 125/2021 Page 2 of 3 By:SUNIL SINGH NEGI Signing Date:28.01.2022 21:45:40 and not as per the Fourth Schedule to the 1996 Act.
4. Without expressing any opinion, one way or the other, on the fees payable to the learned Arbitrator, in view of the request made by the petitioner on 4th November, 2021, for a hearing on the application of the respondent for fixation of fees, which was apparently not noted by the learned Arbitrator while passing the order dated 10th November, 2021, I am of the opinion that the principles of natural justice would require the learned Arbitrator to reconsider the aspect of fixation of fees after granting an opportunity of hearing to the petitioner.
5. I am informed that the matter is listed before the learned Arbitrator on 12th February, 2022.
6. The learned Arbitrator is requested to hear the petitioner on the aspect of fixation of fees, whereafter the learned Arbitrator is requested to pass a fresh order regarding the fees payable to him.
7. It is made clear that this Court is not expressing any opinion, at this stage, regarding the fees payable to the learned Arbitrator and as to whether the Fourth Schedule would, or would not, apply.
8. Re-notify on 22nd February, 2022.
C. HARI SHANKAR, J JANUARY 24, 2022 j Signature Not Verified Digitally Signed OMP(T)(COMM) 125/2021 Page 3 of 3 By:SUNIL SINGH NEGI Signing Date:28.01.2022 21:45:40