Delhi High Court
Sr. Divisional Commercial vs Sanra Hospitality Pvt. Ltd. on 17 December, 2019
$~A-4
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of decision: 17.12.2019
+ ARB.P. 604/2019
SR. DIVISIONAL COMMERCIAL ..... Petitioner
Through Mr. Joydeep Mazumdar and Mr.
Shubhangi Sangal, Advocates.
versus
SANRA HOSPITALITY PVT. LTD. ..... Respondent
Through Mr. K.B. Upadhyay, Mr. Shailesh
Tiwari and Ms. Pallavi Rawat,
Advocates.
CORAM:
HON'BLE MS. JUSTICE JYOTI SINGH
JYOTI SINGH, J. (ORAL)
I.A. 13242/2019
This is an application filed by the petitioner seeking condonation of
delay of 43 days in re-filing the present petition.
For the reasons stated in the application, the same is allowed.
Delay of 43 days in re-filing the present petition is condoned.
ARB.P. 604/2019
1. This is a petition filed under Section 11 (5) of the Arbitration and
Conciliation Act, 1996 ('Act').
2. Mr. K. B. Upadhyay, learned counsel for the respondent submits, on
instructions, from the respondent that he has no objection to the appointment
of an Arbitrator.
3. Brief facts required to be noted are that acceptance of tender was
issued on 11.03.2014. Certain disputes arose between the parties with respect
to the said tender. Northern Railway appointed a Sole Arbitrator on
06.03.2017 in terms of Clause 18 of the Agreement. The respondent herein
filed an application under Section 12(5) of the Act seeking withdrawal of the
Arbitrator on 24.04.2017.
4. Vide letter dated 04.08.2017, the Arbitrator withdrew himself from the
arbitration proceedings. Hence this petition.
5. Arbitration Clause in the Agreement reads as under:-
"18. Dispute Resolution
18.1 In the event of any dispute, controversy or claim of any
kind or nature arising under or in connection with this
Agreement between the Parties (Disputes) the parties shall
firstly attempt to amicably resole such dispute through the
highest level of negotiations and discussions.
18.2 In the Event that dispute between the parties subsist
beyond 30 days of negotiations between the parties, then the
dispute shall be settled as per the provision of Arbitration and
Conciliation Act, 1996. The dispute shall be referred to:
a) Sole Arbitration of a Gazetted Railway Officer
appointed to be the Arbitrator, by the General
Manager/NR awarding the License. The Gazetted
Railway Officer to be appointed as Arbitrator
however, will not be one of these who had as
opportunity to deal with the matters to which the
contract relates or who in the course of their duties
as Railway servant have expressed views on the
any of the matters under dispute or difference.
b) In the event of the arbitrator dying. Neglecting
or refusing to act resigning or being unable to act
for any reason, or his award being set aside by the
court for any reason, it shall be lawful for authority
appointing the arbitrator to appoint another
arbitrator in place of the outgoing arbitrator in the
manner aforesaid.
c) It is further a term of this contract that no person
appointed by the authority asaforesaid should be
act as arbitrator and that if for any reason that is
not possible, the matter is not to be referred to
arbitrator at all.
d) The arbitrator may from time to time with the
consent of all the parties to the contract enlarge the
time for making the award.
e) Upon every and any such reference the
assessment of the cost incidental to the reference
and award respectively shall be in the discretion of
the arbitrator.
f) Subject as aforesaid, the arbitration and
conciliation Act 199 and rules there under and any
statutory modifications thereof for the time being in
force shall be deemed to apply to the arbitration
proceedings under this clause.
g) The venue of the arbitration shall be the place
from which the acceptance note is issued or such
other place as the arbitrator at his discretion may
determine.
h) In this clause the authority to appoint the
arbitrator includes, if there be no such authority,
the officer who is for the time being discharging the
functions of that authority, whether in addition to
other functions or otherwise.
18.3 The award passed shall be final and binding and
both parties waive the right to appeal or contest the arbitral
award.
18.4. It is further clarified that during the resolution of
the dispute, the licensee shall be obligated for the continued
performance of its obligations under the Agreement until the
resolution of the disputes. ''
6. With the consent of the parties, matter is referred to the Delhi
International Arbitration Centre for appointment of a Sole Arbitrator to
adjudicate the disputes between the parties. Arbitration proceedings will be
held as per the procedure of the DIAC and under its aegis.
7. The learned Arbitrator shall give disclosure under Section 12 of the
Act before entering upon reference.
8. Fee of the Arbitrator shall be fixed as per Fourth Schedule of the Act.
9. Copy of this order be sent to DIAC for information.
10. The petition is allowed in the aforesaid terms.
JYOTI SINGH, J
DECEMBER 17, 2019
yo/
