Delhi High Court
Gmr Rajahmundry Energy Limited vs Gail (India) Limited on 17 October, 2017
$~17
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Judgment delivered on: 17.10.2017
+ ARB. P.648 /2017
GMR RAJAHMUNDRY ENERGY LIMITED ...... Petitioner
versus
GAIL (INDIA) LIMIED .....Respondent
Advocates who appeared in this case:
For the Petitioner : Mr Chaitanya Salaya, Ms Shelly Bhasin and Mr Rishi
Agarwala
For the Respondent : Counsel for the respondent.
CORAM:-
HON'BLE MR JUSTICE SANJEEV SACHDEVA
JUDGMENT
17.10.2017
SANJEEV SACHDEVA, J. (ORAL)
IA Nos.11938-39/2017(both applications for exemption)
Allowed, subject to all just exceptions.
ARB.P. 648/2017
1. The petitioner, by this petition under Section 11 of the
Arbitration & Conciliation Act, 1996 seeks appointment of an
Arbitrator under Clause 16.2 of the Gas Transmission Agreement
dated 14.07.2010 entered into between the parties. Respondent was to
make necessary arrangements for the transportations of the
petitioner's gas on the KG basin pipeline.
2. The Dispute Resolution Clause agreed to between the parties
reads as under:-
"16.1 Amicable Settlement:
Save in respect of any dispute on matters, which are to
be referred to Expert determination or in respect of any
dispute on matters which the Parties otherwise agree
shall be referred to Expert for determination, any
dispute, controversy, difference or claim arising out of
or relating to this Agreement or the breach, termination
or validity thereof, shall at the "first instance be
mutually settled between the Parties with in a period of
30 days after giving notice by one party to me other
party.
16.2 Referral for Settlement
i. In the event of failure of a settlement under
Clause 16.1 of any such Dispute, the Dispute shall be
referred to and finally resolved by arbitration under the
Indian Arbitration and Conciliation Act, 1996 (Act
1996) in force at the time such arbitration is
commenced.
ii. If a Dispute is to be settled by arbitration
pursuant to Clause 16.2 i, then an arbitral tribunal (the
"Tribunal") shall be established in accordance with the
provisions of this Clause 16.2 ii. The number of
arbitrators shall be 3 (three). Each Party shall nominate
an arbitrator within 30(thirty) Days of the date of a
request for arbitration, and the two nominated-
arbitrators shall within 30 (thirty) Days of the date of
the nomination of the second arbitrator jointly nominate
a third arbitrator to act as Chairman of the Tribunal.
16.3 Conduct of Arbitration
i. The venue of arbitration shall be New Delhi,
India.
ii. The language to be used in the arbitral
proceedings shall be English."
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3. As per the petitioner, certain disputes arose with regard to the
performance of the Contract leading to the petitioner invoking
Arbitration.
4. The petitioner invoked arbitration by notice dated 21.03.2017
and called upon the respondent to nominate their nominee Arbitrator.
By letter dated 20.04.2017, the petitioner nominated their Arbitrator.
5. Learned counsel for the respondent has submitted that keeping
in view the quantum of claim, it may be expedient to have a Sole
Arbitrator in place of the agreed upon three Member Arbitral
Tribunal.
6. Learned counsel for the parties under instructions submit that a
Sole Independent Arbitrator be appointed to adjudicate the disputes
between the parties.
7. In view of the above, with the consent of parties, Mr Justice
Mukul Mudgal, former Chief Justice of Punjab & Haryana High
Court, is appointed as the Sole Arbitrator to adjudicate the disputes
between the parties.
8. This is subject to the Arbitrator making the necessary disclosure
under Section 12 of the Act of not being ineligible under Section
12(5) of the Act.
9. The Arbitrator shall adjudicate the claims of the petitioner and
the counter claims, if any of the respondents.
10. The Arbitrator shall fix his fee in consultation of the learned
counsel for the parties.
11. The parties are at liberty to approach the learned Arbitrator for
elucidating the necessary disclosures and for further proceedings.
12. The petition is accordingly disposed of.
13. Order Dasti under signatures of the Court Master.
OCTOBER 17, 2017/'Sn' SANJEEV SACHDEVA, J
