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Showing contexts for: arbitration assignment in Siemens Factoring Private Limited vs Future Enterprises Pvt. Ltd on 1 March, 2023Matching Fragments
I do not find any substance in the submission of the learned counsel for the Respondent, who would submit that because the (J)CARAP-174-2022.doc arbitration clause comprised in a assignment document do not bind the Applicant, as it is not signed by him and hence he is not competent to invoke arbitration particularly when the Respondent do not dispute the assignment of 'LIQ' in favour of the Applicant and even has accepted the fact that the assignment is acted upon between the Applicant and the Respondent. If the rights of LIQ are specifically assigned in favour of the Applicant and it had undertaken to discharge all its liabilities and enjoy all its privileges and entitlement, there is no reason why the arbitration clause which permit the parties to refer the disputes for arbitration, arising out of the Master Rental Agreement cannot be invoked by the Applicant. If the arbitration clause is also additionally comprised in the notification of assignment, the object of which was only to apprise the Respondent that the Applicant shall henceforth stand in place of LIQ, when the MRA already contemplating the provision for assignment, merely because the said document which comprised of an arbitration clause in addition to the one in MRA is not signed, cannot be a ground by itself to exclude the Applicant from invoking arbitration since in my considered opinion it has assumed the role of 'LIQ'. The arbitration agreement being definitely assignable , just as any other contract and since the obligations and entitlement are assigned in favour of the Applicant, there is no reason why the arbitration agreement should stand excluded, being part of the contract (J)CARAP-174-2022.doc agreement. Hence, merely because the subsequent communication intimating the assignment to the respondent being not signed, which also comprise of an arbitration clause would not preclude the Applicant from invoking arbitration.
This order was subjected to challenge before the Learned Single Judge, who dealt with similar contentions advanced before me and framed a question for consideration, whether separate arbitration agreement was required to be entered into between the Petitioner and Respondent for adjudication of disputes having arisen in the original contracts between the Respondent and DLF Industries Limited or assignment of the said contract, accepted by the Respondent, would include assignment of arbitration agreement by conduct or otherwise.
79. In my view, no separate execution of the arbitration agreement was required to be executed between the petitioner and the respondent, in view of the fact that the said two contracts containing arbitration agreement was already assigned in favour of the petitioner and the entire contracts were acted upon by both the parties herein.
80 In view of the assignment of the said two contracts in favour of the petitioner, the arbitration agreement contained therein also stood assigned in favour of the petitioner. The petitioner had thus locus standi and had rightly invoked the said arbitration agreement. The impugned order holding that arbitration agreement was not assigned in favour of the petitioner shows patent illegality." 17] From the above observation, it can be clearly discerned that an arbitration agreement can be assigned and where there is a specific provision for assigning of rights and liabilities, and the assignment was duly accepted by the Respondent, is clearly indicative of the intention of the parties in implementation of the rights, obligations, duties and benefits of the original contract.
20] The above letter of intimation was forwarded by LIQ and acknowledged by Respondent, thereby accepting that the Applicant has now stepped into shoes of LIQ which was to receive rentals.
The Respondent has acted upon the notification of assignment and effected payment in favour of the Applicant. In the wake of aforesaid factual scenario, by referring to the intention of the parties, it can be safely gathered that LIQ the original party to the original agreement, when it assign its rights, liabilities in favour of the Applicant, it also include a right to arbitrate. The intention of the parties can very well be gathered from the correspondence exchanged between them and therefore when a dispute arose as regards payment of rents, the Applicant invoked arbitration having stepped into footsteps of LIQ to whom the amount was due and payable and particularly when the Respondent accepted obligations as substitute of the assigners, I am unable to persuade to accept the submission advanced that there is no arbitration agreement assigned between the Applicant and (J)CARAP-174-2022.doc Respondent. There is no need of separate execution of arbitration agreement between the Applicant and Respondent in view of the fact that all the rights in favour of LIQ has been assigned in favour of the present Applicant and this assignment was specifically acknowledged by the Respondent, with the arbitration remedy also being assigned in its favour, the Applicant has rightly invoked arbitration and hence I deem it appropriate to exercise the power to appoint a SoleArbitrator as prayed in the petition.