Delhi High Court
M/S. Vaishno Wire Pvt. Ltd. vs M/S. Smodi Infrasteel Pvt. Ltd. on 17 September, 2020
$~2 (original side)
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ARB.P. 385/2020 & I.A. 8197/2020
M/S VAISHNO WIRE PVT. LTD ..... Petitioner
Through: Mr. Vinay Kumar and
Mr.Manan Aggarwal, Advs.
versus
M/S SMODI INFRASTEEL PVT. LTD. .... Respondent
Through: Mr. Kunal Tandon and
Ms.Richa Sandilya, Advs.
CORAM:
HON'BLE MR. JUSTICE C. HARI SHANKAR
O R D E R (O R A L)
% 17.09.2020
(Video-Conferencing)
1. This petition under Section 11(6) of the Arbitration &
Conciliation Act, 1996 (hereinafter referred to as the "1996 Act"),
seeks appointment of an arbitrator, to arbitrate on the disputes
between the parties.
2. Issue notice. Notice is accepted by Mr. Kunal Tandon, learned
Counsel for the respondent.
3. With the consent of the parties, the petition is taken up for final
disposal.
Signature Not Verified
Digitally Signed By:SUNIL
Signing Date:19.09.2020
21:12:59
4. The disputes between the parties emanate from a contract,
whereunder the respondent supplied material for a construction project
of the petitioner. There are various allegations and counter
allegations, between the petitioner and the respondent, with which this
Court is not required to involve itself, for the present purpose.
5. Section 13 of the PEB Techno-Commercial Proposal dated 22nd
July, 2019 contains the arbitration clause, between the parties, and
reads thus:
" ... In case of any disagreement or dispute, controversy,
claim arising, regarding any matter then either party shall give
to other party will issue a notice in writing of such dispute
and differences and the same shall be discussed and resolved
amicably. In case the dispute or differences is not resolved
within 30 days, then the same be referred to arbitration in
accordance with the provision of arbitration and conciliation
act 1996 or any statutory modification and the rule made there
under. The venue for arbitration shall be New Delhi, India
and all the proceeding shall be in English language only. Both
the party shall have binding to agree to the jurisdiction and
the powers of the arbitrator, appointed as aforesaid and agrees
to be bound by the decision and award of the said arbitrator".
6. Consequent to disputes arising between the parties, the
petitioner invoked the aforesaid arbitration clause vide notice dated
30th July, 2020, which suggested the name of an arbitrator, to arbitrate
on the disputes.
7. The respondent, however, was not agreeable to arbitration of
the disputes by the arbitrator suggested by the petitioner, and
Signature Not Verified
Digitally Signed By:SUNIL
Signing Date:19.09.2020
21:12:59
communicated as much, vide reply dated 5th August, 2020.
8. As such, the parties have been unable to arrive at a consensus
regarding the sole arbitrator, who would arbitrate on the disputes
between them, necessitating the intervention of this Court in view of
Section 11(6) of the 1996 Act.
9. Mr. Kunal Tandon, learned Counsel for the respondent suggests
that the matter may be referred to the Delhi International Arbitration
Centre as he has certain counter claims against the claims preferred by
the petitioner.
10. I am of the opinion that the suggestion is well taken and merits
acceptance.
11. In view thereof, this petition is disposed of by referring the
parties to the Delhi International Arbitration Centre (DIAC), to
nominate an arbitrator to arbitrate on the disputes between the parties.
The DIAC would also consider the issue of referring the counter
claims of the respondent for arbitration.
12. The DIAC would act in accordance with its rules, regulations
and procedure, and the fees payable to the arbitrator would also be
according to the schedule of fees maintained by the DIAC.
13. The parties may appear before the DIAC on 21st September,
2020 at 2 p.m., alongwith a copy of this order.
14. The petition alongwith the pending application stand disposed
Signature Not Verified
Digitally Signed By:SUNIL
Signing Date:19.09.2020
21:12:59
of in the aforesaid terms.
C. HARI SHANKAR, J.
SEPTEMBER 17, 2020/kr
Signature Not Verified
Digitally Signed By:SUNIL
Signing Date:19.09.2020
21:12:59
