Delhi High Court
K. Vallabhdas vs Rotary International & Ors. on 7 September, 2009
Author: S.L.Bhayana
Reported
* HIGH COURT OF DELHI AT NEW DELHI
+ IA No. 7446/2009 in CS(OS) 641/2009
Date of Decision: September, 07th 2009
K. Vallabhdas ... Plaintiff
Through: Mr. S. Ravishankar with
Mr. Yamunah Nachiar, Advs.
Versus
Rotary International & Ors. ... Defendants
Through: Mr. Rajiv Dutta, Sr. Adv. with
Ms. Indrani Ghosh, Mr. Nitin Kala and
Mr. Sandeep Mahapatra, Advs. for D-1 to 3.
Mr. H.S. Jaggi with Mr. Hardik Luthra, Advs.
for D-5.
CORAM:
HON'BLE MR. JUSTICE S.L.BHAYANA
1. Whether reporter of local paper may be allowed to see the
Judgment? Yes.
2. To be referred to the reporter or not? Yes.
3. Whether the judgment should be reported in the Digest? Yes.
JUDGEMENT
S.L. BHAYANA, J.
This application has been filed by defendant No.2 u/s 45 read with
section 5 of the Arbitration and Conciliation Act 1996 for referring the matter
to the arbitration.
2. Learned counsel for defendant No.2 states that the subject matter of the
above suit relates to the election of defendant No.5 to the post of Director of
the Rotary International from Zone 6 for the year 2009-2011. The plaintiff has
filed the suit on account of the rejection of his candidature as a challenging
candidate. The plaintiff has also made allegations that the defendants have
failed to observe the Bye Laws of Rotary International and that since the
defendants have failed to grant relief the same may be granted by this court.
Learned counsel for the defendants further submits that the disputes which
have arisen between the parties are governed by the Bye Laws of Rotary
International which deal with such an eventuality as raised by the plaintiff in
the suit and the same is governed by the following Bye Laws :-
Article 24.010:- Disputes
"Should any disputes other than as to a decision of the
board arises between any current or former member(s) of
a Rotary district, RI or an RI Officer, on any account
whatsoever which cannot be settled amicably, the dispute
shall, upon a request to the General Secretary by any of
the disputants, be resolved by mediation or, if mediation
is refused by one or more parties, be settled by
arbitration. Such a request for mediation or arbitration
should take place within sixty (60) days of the concurrence
of the dispute"
Article 24.030:- Mediation.
"The procedure for such mediation shall be set by the
Board. Either of the disputants may request the General
Secretary, or someone appointed by the General
Secretary for this purpose, to appoint a mediator who is
the member of the Rotary Club, other than that of the
disputing parties, and who has appropriate mediation
skills and experience"
Article 24.040:- Arbitration.
"In the event of a request for arbitration, each party shall
appoint an arbitrator and the arbitrator shall appoint an
umpire. Only a member of a Rotary club, other than that
of the disputants may be appointed as umpire or
arbitrator"
Article 24.050:- Decision of Arbitrators or Umpire.
"If arbitration is requested, the decision by the arbitrator
or, if any disagree, by the umpire shall be final and
binding on all and shall not be subject to appeal".
3. Learned counsel for defendant No.2 further submits that keeping
aforesaid articles in view, this matter can be referred to the arbitration as per
the Bye Laws of the Rotary International and since the plaintiff is the member
of the Rotary International he is bound by the Bye Laws of the Rotary
International and in view of the Bye laws of the Rotary International such like
matter must be referred to the arbitration.
4. On the other hand, learned counsel for the plaintiff has submitted that
the plaintiff is agreeable to refer the matter to the arbitration provided the
arbitrator to adjudicate the present dispute may be appointed by this Court
who is absolutely without any bias and not by the authorities of the Rotary
International.
5. Heard counsel for both the parties.
6. It is an admitted fact that the plaintiff is the member of the Rotary
International and disputes have arisen between the parties pertaining to the
election of defendant No.5 to the post of Director. Bye Laws of the Rotary
International are binding on both the parties and the procedure set forth
therein for appointment of arbitrator has to be followed otherwise it will
amount to deviation from contractual obligation and therefore plaintiff is
bound by the Bye Laws. As per Articles 24.010, 24.030, 24.040 and 24.050, the
matter has to be referred to the arbitration in terms of the above said articles
and in this regard a request can be made to the General Secretary of the
Rotary International or someone appointed by the General Secretary for this
purpose, to appoint a mediator who is the member of the Rotary Club and who
has appropriate mediation skills and experience in the arbitration. In the
event of a request for arbitration, each party shall appoint an arbitrator and
the arbitrator shall appoint an umpire. Only a member of a Rotary Club, other
than that of the disputants may be appointed as umpire or arbitrator.
7. In view of the aforesaid articles, it is therefore ordered that the General
Secretary of the Rotary International is directed to appoint one arbitrator and
the plaintiff is also to appoint an arbitrator who will be the member of the
Rotary Club and both the arbitrators thereafter will appoint an umpire. It is,
therefore ordered that the decision by the arbitrators shall be binding on the
parties and in case of any disagreement, the decision of the umpire shall be
final and binding on all the parties.
8. With these observations, the application stands disposed of.
CS(OS) No. 641/2009
9. Since the matter has been referred to the arbitration nothing survives in
the suit. Accordingly, the suit is disposed of. All pending applications are also
stand disposed of.
S.L.BHAYANA,J
September 07 , 2009
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