Indian Kanoon - Search engine for Indian Law

Delhi High Court - Orders

Rakbro Industrial Corporation vs Esp/ Esp - 2 (Engineer Stores ... on 28 September, 2022

Author: Prateek Jalan

Bench: Prateek Jalan

                    $~31
                    *    IN THE HIGH COURT OF DELHI AT NEW DELHI

                    +           ARB.P. 1130/2022

                                RAKBRO INDUSTRIAL CORPORATION           ..... Petitioner
                                            Through: Mr. Shrey Kumar, Advocate.

                                                           versus

                                ESP/ ESP - 2 (ENGINEER STORES
                                PROCUREMENT) AND ANR.                     ..... Respondents
                                                 Through: Mr. Sanjay Sharma Darmora with
                                                          Mr. Yoginder Uniyal, Advocates
                                                          for R-2.

                    CORAM:
                    HON'BLE MR. JUSTICE PRATEEK JALAN

                                            ORDER

% 28.09.2022 I.A. 15971/2022 (for exemption) Exemption allowed, subject to all just exceptions. The application stands disposed of.

1. By way of this petition under Section 11 of the Arbitration and Conciliation Act, 1996, the petitioner seeks appointment of an arbitrator to adjudicate disputes which have arisen between it and the respondent No. 1 under a Supply Order dated 03.06.2015 [at page 74 of the petitioner's list of documents].

2. The Supply Order is issued with reference to a rate contract for a period of 17.12.2014 to 30.11.2015 issued by the Directorate General of Supplies and Disposals ["DGS&D"]. The said rate contract [page Nos. 58 Signature Not Verified Digitally signed By:SHITU NAGPAL Signing Date:28.09.2022 19:35:39 ARB.P. 1130/2022 Page 1 of 3 to 73 of the petitioner's list of documents] was, in turn, issued pursuant to a tender enquiry opened on 30.01.2014 issued by the DGS&D [page Nos. 12 to 30 of the petitioner's list of documents]. The General Terms and Conditions refer to Form No. DGS&D-1001 [page Nos. 84 to 86 of the petitioner's list of documents] which contains a dispute resolution clause [Clause 23]. The clause provides for resolution of disputes by arbitration of a sole arbitrator being an officer in the Ministry of Law.

3. It appears from the documents placed on record that the petitioner, a small-scale industry, participated in the tender through the National Small Industries Corporation Ltd. ["NSIC"], respondent No. 2 herein. The rate contract was also issued by the DGS&D to NSIC. The petitioner originally sought appointment of an arbitrator by a communication dated 14.11.2019 and was advised by the respondent No. 1 to approach the NSIC for further action. The NSIC by a letter dated 02.06.2020, addressed to the DGS&D, requested for an appointment of an arbitrator to adjudicate the petitioner's claims. Despite considerable correspondence thereafter, it appears that the arbitrator has not yet been appointed. The correspondence rests with a letter dated 29.08.2022, issued by the respondent No. 1, in response to the petitioner's legal notice dated 08.08.2022. By the said letter, the respondent No. 1 claims to have awarded the petitioner's request to the NSIC, but not received any response from them.

4. Issue notice to both the respondents. Mr. Yoginder Uniyal, learned counsel, accepts advance notice on behalf of the respondent No. 2- NSIC. Respondent No. 1 be served by all permissible modes, as also through Mr. Apurv Kurup, learned Standing Counsel for the Union of India.

5. The respondents may file their reply to the petition within two weeks after service.

6. List on 23.11.2022.

PRATEEK JALAN, J SEPTEMBER 28, 2022 'Bhupi'/ Click here to check corrigendum, if any Signature Not Verified Digitally signed By:SHITU NAGPAL Signing Date:28.09.2022 19:35:39 ARB.P. 1130/2022 Page 3 of 3