Delhi High Court - Orders
Swati Gulati vs Fiitjee Ltd. & Anr on 16 February, 2021
Author: Vibhu Bakhru
Bench: Vibhu Bakhru
$~15
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P.(T) 4/2020 & I.A. No.4062/2020
SWATI GULATI ..... Petitioner
Through Mr. Divyakant Lahoti, Adv.
versus
FIITJEE LTD. & ANR. ..... Respondents
Through Mr. Raaj Malhotra, Adv.
CORAM:
HON'BLE MR. JUSTICE VIBHU BAKHRU
ORDER
% 16.02.2021 [Hearing held through videoconferencing]
1. The petitioner has filed the present application under Section 14 of the Arbitration and Conciliation Act, 1996 (hereafter "A&C Act"), inter alia, praying that the mandate of the Sole Arbitrator appointed by respondent No.1 be terminated. The petitioner claims that disputes have arisen between the petitioner and respondent No.1 in connection with an Agreement dated 17.05.2017, in terms of which the petitioner had agreed to the terms as set out in paragraphs 1 to 38 of the Service Rules of the respondent. Respondent No.2 had also fixed his signatures on the same as a surety.
2. The terms and conditions include an Arbitration Clause which is set out below:
"38.(a) All disputes and differences of any nature with regard to the FIITJEE service manual and the interpretation & adjudication of clauses and claims Signature Not Verified Digitally Signed By:DUSHYANT RAWAL Signing Date:17.02.2021 05:51 respectively shall be referred to the Sole Arbitrator appointed by the Company i.e. FIITEE Ltd.. The employee hereby agrees to the appointment of the Sole Arbitrator by the company i.e. FIITJEE Ltd. whenever any dispute arises. The employee undertakes not to oppose the said appointment of the Sole Arbitrator. The arbitration proceedings shall be conducted in accordance with the provisions of the Arbitration & Conciliation Act, 1996 and statutory modification thereof & rules made thereunder. The award of arbitrator shall be final & binding on both the parties. The award of the arbitrator shall be final & binding on every matter arising hereunder. It is further agreed that in spite of the fact that the Sole Arbitrator may be known to any of the Directors or shareholders or may have been appointed as an arbitrator earlier by the company shall not disqualify him. Even if the Arbitrator may have expressed opinion in similar matter earlier shall also not render him disqualified. The venue of the arbitration shall be Delhi/New Delhi only."
3. The petitioner does not dispute to the existence of the Arbitration Clause. Her grievance is essentially, regarding unilateral appointment of the Sole Arbitrator appointed by respondent No.1. It is also alleged that the said arbitrator had been appointed by respondent No.1 on other occasions as well.
4. It is conceded by the learned counsel appearing for respondent No.1 that unilateral appointment of a Sole Arbitrator is no longer permissible. He has no objection if the mandate of the Sole Arbitrator appointed by respondent No.1 is terminated and an Arbitrator is appointed in his place.
5. In view of the above, the present application is allowed and the mandate of the Sole Arbitrator unilaterally appointed by respondent No.1 is terminated.
Signature Not Verified Digitally Signed By:DUSHYANT RAWAL Signing Date:17.02.2021 05:516. At the instance of the parties, Mr. Balbir Singh Mathur, ADJ (Retd.) (mobile no. - 9910384603) is appointed as a Sole Arbitrator to adjudicate the disputes that have arisen between the parties, falling within the scope of Clause 38 (a) as set out above.
7. This is subject to the learned 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.
8. The parties are at liberty to approach the learned Arbitrator for further proceedings.
9. It is clarified that all rights and contentions of the parties are reserved.
VIBHU BAKHRU, J FEBRUARY 16, 2021 dr Signature Not Verified Digitally Signed By:DUSHYANT RAWAL Signing Date:17.02.2021 05:51