Delhi High Court - Orders
M/S Sheetal International Pvt Ltd vs M/S New India City Developers Pvt. Ltd. & ... on 28 January, 2021
Author: Vibhu Bakhru
Bench: Vibhu Bakhru
$~14
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ARB.P. 291/2020 & I.A. 11461/2020
M/S SHEETAL INTERNATIONAL PVT LTD. ..... Petitioner
Through Mr Manish Sharma, Advocate with
Mr Ninad Dogra, Advocate.
versus
M/S NEW INDIA CITY DEVELOPERS
PVT. LTD. & ORS. ..... Respondents
Through Mr Gagandeep Mehta, Advocate for
respondent no.2.
Mr Rajiv Kumar Dhiman, Authorized
Representative of Respondent no.4.
CORAM:
HON'BLE MR. JUSTICE VIBHU BAKHRU
ORDER
% 28.01.2021 [Hearing held through videoconferencing]
1. The petitioner has filed the present petition under Section 11 (4) of the Arbitration and Conciliation Act, 1996 (hereafter 'the A&C Act'), inter alia, praying that an independent Arbitrator be appointed in terms of the Joint Development Agreement dated 05.08.1996.
2. The notices of the present petition have been served on the respondents. An affidavit of service has also been filed. However, none appears for respondent no.1.
3. By an order dated 06.01.2021, this Court had directed that the learned counsel, who appeared for respondent no.1 in arbitral proceedings held earlier, be informed about the next date of hearing. This Court is informed that the learned counsel, who appeared for respondent no.1 in earlier arbitral proceedings, was also informed of the present hearing.
4. It is seen from the record that respondent nos. 2, 3 and 4 have no objection for the present petition to be allowed.
5. The Joint Development Agreement dated 05.08.1996 contains an Arbitral Clause, which is set out below:-
"18. Arbitration In the event of there being any disputes or differences between the parties hereto the same shall be referred to one Arbitrator to be jointly nominated by the Representatives mentioned above whose decision shall be final and binding on the parties. The arbitration shall be held in accordance with the Arbitration Ordinance 1996 and any Act made thereunder. However the parties have specifically agreed not to create any obstruction or hindrance in the completion of the project even during the course of arbitration."
6. In view of the disputes that have arisen between the parties, the parties had appointed Justice (Retired) B.N. Kirpal, a former Chief Justice of India, as the Sole Arbitrator. It is averred that partial consent awards have been passed by the learned Arbitrator and several issues between the parties were resolved. However, on 20.05.2006, the learned Arbitrator resigned due to health reasons.
7. Thereafter, respondent no.1 preferred an application under Section 11 of the A&C Act (Arbitration Application No. 468/2006) before this Court. The same was allowed and by an order dated 31.01.2007, Justice (Retired) R.C. Lahoti, a former Chief Justice of India, was appointed as the Sole Arbitrator. He continued with the reference and also passed five partial awards with the consent of the parties. However, he too resigned as an Arbitrator on 30.07.2010.
8. It is averred that since several disputes between the parties continue to persist, the petitioner issued a notice dated 09.09.2010, seeking appointment of the Sole Arbitrator by mutual consent. Although, respondent no.1 agreed to take steps for appointment of an Arbitrator by mutual consent, the parties could not agree for appointment of a Sole Arbitrator. The petitioner once again approached this Court under Section 11 of the A&C Act and by an order dated 29.03.2011, this Court appointed Justice (Retired) V.N. Khare, a former Chief Justice of India, as the Sole Arbitrator. The said Arbitrator also passed three partial awards by the consent of parties.
9. The learned Arbitrator has since resigned as an Arbitrator. It is in the aforesaid context that the petitioner has filed the present petition.
10. Since there is no dispute as to the existence of the Arbitration Clause and that certain disputes between the parties remain unresolved, this Court considers it apposite to allow the present petition. Accordingly, Justice (Retired) G.S. Singhvi, a former Judge of the Supreme Court, is appointed as the Sole Arbitrator to adjudicate the disputes between the parties. This is subject to the Arbitrator making a 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 Arbitrator for further proceedings.
12. It is clarified that all rights and contentions of the parties are reserved.
13. The pending application is also disposed of.
VIBHU BAKHRU, J JANUARY 28, 2021/pkv