Delhi High Court
Cln Energy Pvt. Ltd. (Formerly ... vs E Ashwa Automotive Private Limited on 26 July, 2024
Author: C.Hari Shankar
Bench: C.Hari Shankar
$~5
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ARB.P. 508/2024
CLN ENERGY PVT. LTD. (FORMERLY
JLNPHENIX ENERGY PVT. LTD.) .....Petitioner
Through: Ms. Ekta Bharati and Mr.
Roshan Sonthalia, Advs.
versus
E ASHWA AUTOMOTIVE PRIVATE LIMITED ..Respondent
Through: None
CORAM:
HON'BLE MR. JUSTICE C.HARI SHANKAR
JUDGMENT (ORAL)
% 26.07.2024
1. The petitioner, by this petition under Section 11(6)1 of the
Arbitration and Conciliation Act, 19962 requests the Court to appoint
an arbitrator to arbitrate on the disputes with the respondent. The
dispute arises in the context of a Master Sale Purchase Agreement3
dated 1 May 2022, executed between the petitioner and the
respondent. The MSPA contains the following arbitration clause,
whereby the disputes relating to the MSPA are to be resolved by
1 (6) Where, under an appointment procedure agreed upon by the parties--
(a) a party fails to act as required under that procedure; or
(b) the parties, or the two appointed arbitrators, fail to reach an agreement expected of them
under that procedure; or
(c) a person, including an institution, fails to perform any function entrusted to him or it
under that procedure,
the appointment shall be made, on an application of the party, by the arbitral institution
designated by the Supreme Court, in case of international commercial arbitration, or by the High
Court, in case of arbitrations other than international commercial arbitration, as the case may be to
take the necessary measure, unless the agreement on the appointment procedure provides other
means for securing the appointment.
2 "the 1996 Act" hereinafter
3 "MSPA" hereinafter
ARB. P. 508/2024 Page 1 of 3 Digitally Signed
By:CHANDRASHEKHARAN
KUMAR HARI SHANKAR
Signing Date:29.07.2024 Signing Date:29.07.2024
18:48:22 18:47:24
arbitration:
"6.3 ARBITRATION
Any dispute arising between the parties out of or relating to the
construction, meaning, scope, operation or effect of this
Agreement or the validity or the breach thereof shall be settled by
arbitration in accordance with the Arbitration and Conciliation
Act, 1996 as amended from time to time and the award made in
pursuance thereof shall be binding on the parties. The venue and
seat of arbitration will be Delhi."
2. As disputes arose between the parties, relating to an amount of
₹ 6.37 Lakhs which, according to the petitioner, remains to be paid by
the respondent, the petitioner addressed a notice to the respondent
under Section 21 of the 1996 Act, seeking to invoke arbitration and
suggesting the name of an Advocate of this Court as the arbitrator.
3. The respondent did not choose to reply.
4. The petitioner has, therefore, approached this Court by means
of the present petition under Section 11(6) of the 1996 Act, seeking
appointment of an arbitrator by this Court.
5. On the last date of hearing, Mr. Rajat K. Mittal, learned
Counsel had accepted the notice for the respondent and sought time to
file reply, which was granted. No reply has been filed.
6. Today, though the matter has been called out twice, there is no
appearance on behalf of the respondent at either call.
7. The Supreme Court has, in its recent decision in SBI General
ARB. P. 508/2024 Page 2 of 3 Digitally Signed
By:CHANDRASHEKHARAN
KUMAR HARI SHANKAR
Signing Date:29.07.2024 Signing Date:29.07.2024
18:48:22 18:47:24
Insurance Co Ltd v. Krish Spinning4, narrowed down the scope of
inquiry by the Section 11(6) Court, underscoring that, in the spirit of
arbitration, save and except for the question of whether an arbitration
exists between the parties, most aspects should be left for decision by
the learned Arbitral Tribunal.
8. Ms. Ekta Bharati, learned Counsel for the petitioner has, as
already noted, pointed out the arbitration clause between the parties.
The disputes, prima facie, are arbitrable.
9. Accordingly, this Court appoints Mr. Abhay Sharan Singh,
Advocate (Cell: 7982841287), as the arbitrator to arbitrate on the
disputes between the parties.
10. The arbitration would take place under the aegis of the Delhi
International Arbitration Centre (DIAC) and would abide by its rules
and regulations. The learned arbitrator shall be entitled to fees as per
the schedule of fees maintained by the DIAC.
11. The learned arbitrator is also requested to file the requisite
disclosure under Section 12(2) of the 1996 Act within a week of
entering on reference.
12. The petition stands allowed in the aforesaid terms.
C.HARI SHANKAR, J
JULY 26, 2024
rb
Click here to check corrigendum, if any
4 2024 SCC OnLine SC 1754
ARB. P. 508/2024 Page 3 of 3 Digitally Signed
By:CHANDRASHEKHARAN
KUMAR HARI SHANKAR
Signing Date:29.07.2024 Signing Date:29.07.2024
18:48:22 18:47:24
