HC appoints Justice G. Rohini as an Arbitrator in a matter of dispute regarding telecom sites between Orion Security Solutions and ATC Telecom Infrastructure [Read Judgment]

On 28^th June, a bench of Delhi High Court consisting of Justice C. Hari Shankar directed Orion Security Solutions to hand over peaceful and vacant possession of the towers various sites on or before 30^th. Orion has further been refrained from interfering with the operation of the aforesaid telecom sites by ATC.

The court also agreed on the party’s solution to appointment of arbitrator to reach an amicable solution. Thereby, appointing Hon’ble Ms Justice G. Rohini as an arbitrator to arbitrate on the disputes.

Facts of the case:

In the present case three petitions raised interconnected issues. M/s Orion Security Solutions Private Limited (“Orion”, in short) agreed to provide operation and maintenance services and surveillance services in respect of the tower sites of M/s ATC Telecom Infrastructure Private Limited. Disputes had arisen between the parties in respect of these agreements. Further another petition has been filed by Orion against ATC, for restraining the ATC from encashing Bank Guarantees issued by Standard Chartered Bank, New Delhi.

Contention of the petitioner:

Mr. Sharma, learned counsel for the petitioners submitted the following contentions:

1. It was submitted that Bank Guarantee No.003GT01192210001 for ₹ 25,00,891 and Bank Guarantee No. 003GT02192460003 for ₹ 35,05,900 /- have already been encashed and that Bank Guarantee No. 316020706647-SP, issued by the Standard Chartered Bank is not traceable.
2. Even if it is traced, he made a submission on behalf of his client that, subject to Orion handing over vacant and peaceful possession of the tower sites to ATC on or before 30th June, 2021 and ensuring that their personnel do not disrupt the petitioner from operating the said tower sites they won’t invoke third bank guarantee issued by Standard Chartered Bank.

Contention of the respondent:

Mr. Joby Verghese, learned Counsel for Orion agreed to the suggestion of the petitioner. Further both the counsels also agreed on the appointment of  an arbitrator by the court to arbitrate all the disputes between the parties, so that a speedy resolution thereof can be attained.

Observation and Judgement of the Court:

The Hon’ble bench made the following directions:

1. Orion shall hand over, to ATC, peaceful and vacant possession of the towers on or before 30th (iv) No orders are being passed in respect of Bank Guarantee June, 2021.
2. Orion shall ensure that they and their personnel do not interfere with the operation of the aforesaid telecom sites by ATC.
3. ATC was injuncted from invoking Bank Guarantee No. 316020706647 issued by the Standard Chartered Bank subject to any award/order of the arbitrator.
4. The court further requested Hon’ble Ms Justice G. Rohini, former Chief Justice of the Court, to arbitrate on the disputes.
5. The arbitrator was directed to file the requisite declaration under Section 12 of the Arbitration and Conciliation Act, 1996 within a week of entering on reference

Thus, the petitions were disposed of by the court leaving all the contentions of the parties open to be urged during the arbitral proceeding.

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