Delhi High Court
Snap On Tools Private Limited vs Ms Metrics Applications on 20 November, 2024
Author: Sachin Datta
Bench: Sachin Datta
$~13
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision : 20.11.2024
+ ARB.P. 1418/2024
SNAP ON TOOLS PRIVATE LIMITED .....Petitioner
Through: Ms. Sharanya Bhatnagar, Advocate.
versus
MS METRICS APPLICATIONS .....Respondent
Through: None.
CORAM:
HON'BLE MR. JUSTICE SACHIN DATTA
SACHIN DATTA, J. (Oral)
1. The present petition has been filed under Section 11(4) and (6) of the
Arbitration and Conciliation Act, 1996 (hereinafter 'the A&C Act') seeking
appointment of a Sole Arbitrator to adjudicate the disputes between the
parties. The disputes between the parties have arisen in context of an
Authorised Reseller Agreement dated 25.05.2019 (hereinafter 'the
agreement').
2. Under the said agreement, the respondent was engaged as the
'Authorised Reseller' of the products manufactured by the petitioner.
Disputes between the parties have arisen on account of alleged non-payment
by the respondent of its monetary dues under the Agreement.
3. Clause 16 of the said agreement contains the arbitration clause as
under:-
"16. Arbitration & Dispute Resolution
16.1 Amicable settlement/Notice of dispute
In the event of any dispute or difference between the Parties in
connection with this Agreement, the Parties shall use all reasonable
endeavors to resolve the matter on an amicable basis. If one party serves
a written notice to the other Party that a dispute or difference has arisen
and the Parties are unable to resolve the dispute or difference within a
period of thirty (30) days from the service of such notice, the dispute or
difference shall be referred to arbitration as per the provisions of Article
16.2.
16.2 Arbitration
Each of the Party agrees to resolve any dispute or difference arising out
of or relating to or in connection with the validity, interpretation, breach
or termination of this Agreement in terms of the (Indian) Arbitration and
Conciliation Act, 1996 or any statutory modification or re-enactment
thereof. The place of arbitration shall be New Delhi, India. The language
of arbitration proceedings shall be English. The arbitration shall be
conducted by Sole Arbitrator, appointed by & at the sole discretion of the
Company. The arbitration award shall be final and binding upon the
Parties. The cost of arbitration shall be borne equally by the parties to
the Arbitration, if not decided by the Arbitration Tribunal."
4. Disputes having arisen, a 'Demand notice cum notice invoking
arbitration' dated 05.06.2024 was issued by the petitioner, calling upon the
petitioner to settle the outstanding dues of the respondent and proposing the
name of a person who could be appointed as the Sole Arbitrator to
adjudicate the disputes between the parties, in case the respondent is unable
to settle the said outstanding dues. No response thereto was submitted by the
respondent.
5. As the parties were unable to mutually agree to the appointment of a
Sole Arbitrator to adjudicate the disputes between the parties, the present
petition has been filed.
6. Notice was issued in the present petition on 12.09.2024. While the
learned counsel for the respondent entered appearance on the last date of
hearing, i.e. on 12.11.2024 and sought time for instructions, none appears
for the respondent today. In the aforesaid circumstances, the present petition
has been taken up for hearing and disposal.
7. Since the existence of the arbitration agreement is evident from a
perusal of the Agreement, there is no impediment to appointing an
independent Sole Arbitrator to adjudicate the disputes between the parties as
prayed for, and as mandated in terms of the judgments of the Supreme Court
in Perkins Eastman Architects DPC v. HSCC (India) Ltd (2020) 20 SCC
760, TRF Limited v. Energo Engineering Projects Ltd., (2017) 8 SCC 377,
Bharat Broadband Network Limited v. United Telecoms Limited., 2019
SCC OnLine SC 547 and Interplay between Arbitration Agreements under
the Arbitration & Conciliation Act, 1996 & the Indian Stamp Act, 1899, In
re, 2023 SCC OnLine SC 1666 and SBI General Insurance Co. Ltd. v.
Krish Spinning 2024 INSC 532.
8. Accordingly, Mr. Shashwat Bajpai, Advocate (Mob.: 9811208936) is
appointed as the Sole Arbitrator to adjudicate the disputes between the
parties.
9. Respondents shall be entitled to raise appropriate jurisdictional
objections, if any, before the learned sole arbitrator which shall be duly
considered by the learned sole arbitrator on merits.
10. The learned Sole Arbitrator may proceed with the arbitration
proceedings subject to furnishing to the parties, the requisite disclosures as
required under section 12 of the A&C Act; and in the event there is any
impediment to the appointment on that count, the parties are given liberty to
file an appropriate application in this court.
11. The learned Sole Arbitrator shall be entitled to fee in accordance with
the IVth Schedule to the A&C Act; or as may otherwise be agreed to
between the parties and the learned Sole Arbitrator.
12. All rights and contentions of the parties in relation to the
claims/counter-claims are kept open, to be decided by the learned Arbitrator
on their merits, in accordance with law.
13. Needless to say, nothing in this order shall be construed as an
expression of this court on the merits of the case.
14. The present petition stands disposed of in the above terms.
SACHIN DATTA, J
NOVEMBER 20, 2024/dn
