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Judgment
The present Petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the “Act, 1996”) has been filed on behalf of the petitioners seeking appointment of an independent Arbitrator.
It is submitted that the respondent No. 1 is engaged in the business of producing various web series, cinematographic films etc., and broadcasting the same on various platforms. The respondent No. 2 is engaged in the business of financing various projects and producing various web series, cinematographic films etc., and broadcasting the same on various platforms.
The respondent Nos. 1 and 2 through their Director and Partner approached the petitioners for the substantial financial investment towards production, editing, post-production, delivery and successful telecast of Season 1 of web series i.e., Kuberan’s House under the Advertiser Funded Program Model.
The petitioners and the respondent Nos. 1 and 2 entered into a Tripartite Agreement dated 17.03.2022 under which the petitioners made an investment aggregating to Rs. 15,00,00,000/- towards the production of Kuberan’s House and the money was deposited in the bank account of the respondent No. 2, the petitioners thereby fulfilled their obligations under the Agreement. The respondent No. 1 secured the investment amount by giving three personal guarantee cheques of an amount of Rs. 5,00,00,000/- each by the stakeholders of respondent No. 1.
The respondents assured the petitioners that the project Kuberan’s House is likely to be launched within 2-3 months to keep the petitioners from knowing their true motives. However, the respondents suddenly stopped giving updates and responding to any of the petitioners’ messages which clearly shows their mala fide intention to cheat the petitioners and misappropriate the amount.
On 10.02.2023, the petitioners deposited the Cheques bearing No. 000003, 359344 and 749546 all dated 10.02.2023 for an amount of Rs. 5,00,00,000/- each given by the respondent No. 1 at the time of execution of the Tripartite Agreement to recover the invested amount of Rs. 15,00,00,000/- by the petitioners. However, the said cheques were dishonoured, wherein two cheques were dishonoured due to insufficient funds and one cheque was dishonoured de to payment stopped by drawer.
The petitioners left with no option, sent a Notice dated 12.07.2023 to the respondents for amicable settlement under the Tripartite Agreement dated 17.03.2022, however, the respondents failed to reply to the said Notice.
Thereafter, the petitioners issued the Notice dated 01.09.2023 under Section 21 of the Act, 1996 invoking arbitration in terms of the Clause 12.8.4 of Tripartite Agreement dated 7.03.2022 to the respondents.
The respondent No. 1 and respondent No. 2 vide E-mail dated 04.09.2023 and 05.10.2023 respectively replied to the Notices acknowledging the Legal Notice dated 12.07.2023 as well as the Notice dated 01.09.2023 under Section 21 of the Act, 1996, wherein the respondent No. 1 did not dispute the existence of the Arbitration Agreement as well as the liability towards the petitioners and in fact, the respondent No. 1 agreed for the amicable settlement and sought time to clear the issue between the parties. The respondent No. 2 purportedly refused to give consent for the appointment of Arbitrator.
Left with no option, the present petition has been filed on behalf of the petitioners seeking appointment of an independent Arbitrator for adjudication of the disputes between the parties.
Learned counsels for the respondents submit that they have no objection if the present petition is allowed.
Submissions heard.
In view of the submissions made as well as Clause 12.8.4 of Tripartite Agreement dated 17.03.2022 which provides for arbitration and the petitioners have raised the arbitrable disputes and without prejudice to the rights and contentions of the parties, the present petition is allowed and Mr. G.P. Mittal, Former Judge, Delhi High Court, Mobile No. 9910384610 is hereby appointed as the Arbitrator to adjudicate the disputes between the parties.
The parties are at liberty to raise their respective objections before the Arbitrator.
The fees of the learned Arbitrator would be fixed in accordance with the Fourth Schedule of the Act, 1996 or as consented by the parties. 14. This is subject to the Arbitrator making necessary disclosure as under Section 12(1) of the Act, 1996 and not being ineligible under Section 12(5) of the Act, 1996.
The arbitration shall be conducted under the aegis of Delhi International Arbitration Centre, Delhi High Court.
The parties are directed to contact the Arbitrator within one week of being communicated a copy of this Order to them by the Registry of this Court.
Accordingly, the present petition is disposed of in the above terms.