Delhi High Court - Orders
Rcc Infraventures Limited vs Dmi Finance Private Limited & Anr on 2 November, 2020
Author: Rekha Palli
Bench: Rekha Palli
Via video conferencing
$~OS-18
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P.(I) (COMM.) 249/2020
RCC INFRAVENTURES LIMITED ..... Petitioner
Through: Ms.Amrita Panda, Adv. with Mr.Ravi
Jain and Mr. Luv Jain, AR of the
petitioner.
versus
DMI FINANCE PRIVATE LIMITED & ANR. ..... Respondents
Through: Mr.Kushal Bansal, Adv. for R-1.
Mr.Siddharth Khattar, Adv. for R-2
CORAM:
HON'BLE MS. JUSTICE REKHA PALLI
ORDER
% 02.11.2020
1. This is a petition under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act') seeking the following reliefs:-
"a) Direct the respondent no.1 company to immediately deposit a payment of Rs. 45 crores (initial Rs. 10 crores & Rs. 17.5 crores & Rs.17.5 crores which will be received by Respondent no.2 from NHAI through bills) in the Registry, Delhi High Court;
b) Appoint a responsible person under whose supervision the said deposited money shall be distributed unequivocally to all the vendors as per the MoU dated 5th January 2020 between the Petitioner and Respondents 1 & 2;
c) Restrain both the Respondents from using the machineries and equipments belonging to the petitioner company as per the list attached and direct the Respondents to pay and resolve the Signature Not Verified Signed By:GARIMA MADAN Location: Signing Date:03.11.2020 13:19:55 issues with the financing agencies within stipulated period of time;
d) Appoint a reputed independent financial agency to monitor the cash flow and fund utilisation of the said project till the liabilities of petitioner company are cleared including all the guarantees given by the petitioner company. The agency be directed to submit monthly report to all the parties to ensure transparency and to avoid siphoning of funds from the said project."
2. On 28.08.2020, learned counsel for the petitioner, after having argued the matter at great length, had submitted that the petitioner would be satisfied if an independent Arbitrator is appointed by this Court for adjudication of disputes between the parties so that the petitioner may seek the reliefs sought in the present petition by moving an appropriate application under Section 17 of the Act before the learned Arbitrator instead. At that stage, this Court had taken note of the fact that certain entities/parties who were signatories of the Memorandum of Understanding dated 05.01.2020, in respect whereof the present disputes have arisen, had not been arrayed in this petition. Therefore, at the oral request of learned counsel for the petitioner, this Court had granted time to the petitioner to implead M/s RCC Eco-Build System Limited, Mr. Ravi Kumar Jain, Mr. Luv Jain and M/s Insta Con Real Estate Private Limited in this petition. Thereafter, though the matter was adjourned on two separate occasions at its request, the petitioner failed to take the necessary steps to implead these parties.
3. However, today, the petitioner reiterates its oral request to implead the aforesaid four parties in this petition, which request is not opposed by the learned counsel of the respondent. Accordingly, at the oral request of the Signature Not Verified Signed By:GARIMA MADAN Location: Signing Date:03.11.2020 13:19:55 petitioner, M/s RCC Eco-Build System Limited, Mr. Ravi Kumar Jain, Mr. Luv Jain and M/s Insta Con Real Estate Private Limited, who are necessary parties for adjudication of this dispute, are impleaded in the present petition. The petitioner is directed to file the amended memo of parties within a period of one week.
4. Ms. Amrita Panda, learned counsel appearing on behalf of the petitioner, submits that she has instructions to appear for three of the freshly impleaded respondents, i.e., M/s RCC Eco-Build System Limited, Mr. Ravi Kumar Jain and Mr. Luv Jain. Even otherwise, Mr. Ravi Kumar Jain and Mr. Luv Jain are present in the court today through video conferencing. Similarly, Mr Siddharth Khattar, learned counsel appearing on behalf of respondent no.2 submits that he has instructions to appear on behalf of the freshly impleaded M/s Insta Con Real Estate Private Limited.
5. Learned counsel for all the parties, including the four freshly impleaded respondents, jointly pray that the petition be disposed of by appointing an independent arbitrator by this Court for adjudication of disputes that have arisen between them.
6. Accordingly, with the consent of the parties, the petition is disposed of by appointing Justice R. Bhanumati (Retd.), Supreme Court Judge (Mobile No. 7042955477) as the sole Arbitrator for adjudication of disputes between the parties in relation to the MoU as also the Reconstitution Deed dated 05.01.2020.
7. Before commencing arbitration proceedings, the learned Arbitrator will ensure compliance with Section 12 of the Act. The fee of the learned Arbitrator shall be determined in accordance with the Schedule-IV of the Act.
Signature Not Verified Signed By:GARIMA MADAN Location: Signing Date:03.11.2020 13:19:558. It is clarified that it will be open for the petitioner to seek the very same reliefs sought in the present petition, before the learned Arbitrator by filing an appropriate application under Section 17 of the Act. It is further made clear that this Court has not considered the rival claims of the parties on merits and it will be open for them to raise all pleas permissible in law before the learned Arbitrator. It will, therefore, be open for the parties to file their respective claims/counter claims, including the Section 17 application, before the learned Arbitrator, which will be considered as per law.
9. A copy of this order be sent to the learned Arbitrator through electronic means.
10. The petition is disposed of in the aforesaid terms.
REKHA PALLI, J NOVEMBER 2, 2020 gm Signature Not Verified Signed By:GARIMA MADAN Location: Signing Date:03.11.2020 13:19:55