Raj Kumar Sahni & Sons(Huf) vs M/S G.B Tools & Orgings Ltd & Ors
2015 Latest Caselaw 5188 Del

$~12
*      IN THE HIGH COURT OF DELHI AT NEW DELHI
+      CS(OS) 2315/2014
       RAJ KUMAR SAHNI & SONS(HUF)               ..... Plaintiff
                     Through : Mr. Ashish Bhagat, Advocate

                            versus

       M/S G.B TOOLS & ORGINGS LTD & ORS          ..... Defendants
                      Through : Mr. Anuj Kr. Sharma, Advocate

     CORAM:
      HON'BLE MS. JUSTICE HIMA KOHLI
                      ORDER

      %               20.07.2015
I.A.No.1064/2015 (by the defendants                 u/Sec.8     of    the
Arbitration & Conciliation Act)

1. The plaintiff has instituted the accompanying suit against the

defendants praying inter alia for recovery of money towards arrears of

rent in respect of the premises bearing No.02A/B, 1st Floor, Plot

No.1515, Chander Plaza Building, Kotla Wazir Nagar, New Delhi, and

the difference of TDS and service tax with simple interest on the

outstanding amount, totalling to Rs.22,97,539/- along with pendente

lite and future interest.

2. The applicants/defendants have filed the present application

stating inter alia that the Lease Deed dated 31.7.2008 in respect of

the suit premises contains an arbitration clause, i.e., Clause 9.5, which

is reproduced herein below for ready reference:

"9.5 If any dispute in the matter of the aforesaid clauses,

the same shall be settled with negotiations. If no settlement can be arrived, the dispute shall be referred to the sole arbitration in New Delhi, who will be appointed by the lessor and this agreement shall be governed and construed in all respect in accordance with the laws of India prevalent at that time, the decision of the arbitrator shall be binding upon the parties."

3. Counsel for the defendants submits that in view of the fact that

the parties had agreed to submit themselves to arbitration to resolve

any dispute arising out of the lease deed, the suit instituted by the

plaintiff is liable to be rejected.

4. Notice was issued on this application on 16.1.2015, returnable

for today.

5. Mr. Bhagat, learned counsel for the plaintiff fairly states that his

client has no objection to submitting to arbitration but with a request

that an independent arbitrator may be appointed by the Court instead

of leaving it to the lessor to appoint one, as stipulated in the captioned

arbitration clause.

6. Counsel for the defendants states that he has no objection to the

said suggestion and is agreeable to the appointment of a sole

arbitrator by the Court to adjudicate the dispute between the parties.

7. Accordingly, Mr. Ashwani Kumar Matta, Senior Advocate, (Mobile

No.9911155111) is appointed as an Arbitrator to adjudicate the

disputes, including those that are the subject matter of the present

suit. Both the parties shall be entitled to file their respective

claims/counter claims for adjudication by the learned Arbitrator. The

arbitration shall take place under the aegis of the Delhi International

Arbitration Centre (DAC). The fees of the learned Arbitrator will be in

terms of the Delhi International Arbitration Centre Arbitration

Proceedings (Arbitrators' Fees) Rules.

8. The parties alongwith their counsels are directed to appear

before the learned Arbitrator on 25.7.2015, at 11.00AM, for setting

down a schedule for conducting the proceedings.

9. The application is disposed of.

10. A copy of this order be communicated forthwith to the learned

Arbitrator as well as Additional Co-ordinator, DAC.

CS(OS) 2315/2014 & IA No.4139/2015

In view of the order passed today in I.A.No.1064/2015, wherein

the parties have submitted themselves to a sole arbitrator, nothing

further survives for adjudication in the present suit, which is

accordingly disposed of, along with the pending application.

Dasti.

HIMA KOHLI, J JULY 20, 2015 sk/ap