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Judgment
SACHIN DATTA, J. (ORAL)
The present petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter ‘the A&C Act’) seeks constitution of an Arbitral Tribunal to adjudicate the disputes between the parties.
The present petition has been filed in the context of an arbitration agreement incorporated in the “Agreement for Construction” dated 04.09.2021 entered into between the parties.
The said agreement contains an Arbitration Clause as under:-
“37.Any and all disputes (“Disputes”) arising out of or in relation to this Agreement between the Parties or arising out of or relating to or in connection with this Agreement or the performance or non- performance of the rights and obligations set forth herein or the breach, termination, invalidity or interpretation thereof shall be referred for arbitration in terms of the Arbitration and Conciliation Act, 1996 or any amendments thereof. Prior to submitting the Disputes to arbitration, the Parties shall resolve to settle the Dispute(s) amicably through mutual negotiation and discussions. In the event that the said Dispute(s) are not settled within 15 (Fifteen) days from the date of referring the same to negotiations, the same shall finally be settled and determined by arbitration in accordance with the Arbitration and Conciliation Act, 1996 or any amendment thereof. The seat/ place of arbitration shall be New Delhi and the language used in the arbitral proceedings shall be English. The arbitral tribunal shall consist of one arbitrator to be mutually agreed by the Parties. In the event the Parties fail to appoint the arbitrator through mutual discussion, the Parties shall approach the applicable court/forum for the appointment of the arbitrator and the decision of the court/forum in this regard shall be binding on the Parties. The arbitral award shall be in writing and be final and binding on the Parties and be enforceable in any court of competent jurisdiction.”
Learned counsel for the respondents does not dispute the existence of the Arbitration Agreement. He, however, submits that the parties have been in discussions with each other and there is a possibility of an amicable resolution of the matter.
It is noticed that a petition under Section 9 of the A&C Act has also been filed by the petitioner being O.M.P (I) (COMM) 191/2024 in which there is a subsisting interim order/s have been passed.
Since, the existence of the arbitration agreement is not in dispute, there is no impediment to constituting an Arbitral Tribunal to adjudicate the disputes between the parties.
Accordingly, with the consent of the parties, Ms Priya Kumar, Senior Advocate (Mobile No. +91 9811355512) is appointed as the Sole Arbitrator to adjudicate the disputes between the parties.
At joint request, it is directed that before adjudication of disputes on merits, the learned Sole Arbitrator shall take appropriate measures to encourage settlement of the dispute and for this purpose may take recourse to such procedures as may be considered appropriate and as envisaged under Section 30(1) of the A&C Act.
The learned Sole Arbitrator may proceed with the arbitration proceedings subject to furnishing to the parties requisite disclosures as required under Section 12 of the A&C Act.
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.
The learned Sole Arbitrator shall fix her own fees in consultation with the parties.
Needless to say, nothing in this order shall be construed as an expression of opinion of this Court on the merits of the case.
The present petition is allowed in the above terms.