M/S. EMGREEN IMPEX LIMITED v. M/S. OHM PIPES PRIVATE LIMITED

Delhi High Court · 02 May 2025 · 2025:DHC:3259
Manoj Jain
CM(M) 3538/2024
2025:DHC:3259
civil other Significant

AI Summary

The Delhi High Court upheld the referral of a commercial dispute to arbitration under Section 8 of the Arbitration Act, allowing the petitioner to seek appointment of an arbitrator under Section 11(6), while leaving all rights and contentions open.

Full Text
Translation output
CM(M) 3538/2024 1
HIGH COURT OF DELHI
Date of Decision: 02nd May, 2025
CM(M) 3538/2024 & CM APPL. 58405/2024 & CM APPL.
58407/2024 M/S. EMGREEN IMPEX LIMITED .....Petitioner
Through: Mr. Avneesh Arputham
WITH
Mr. Ankit Sharma, Advocates.
VERSUS
M/S. OHM PIPES PRIVATE LIMITED .....Respondent
Through: Mr. Abhay Kaushik
WITH
Mr. Sachin Jain and Ms. Himani Babbar, Advocates.
CORAM:
HON'BLE MR. JUSTICE MANOJ JAIN
JUDGMENT
(oral)

1. Petitioner herein had filed a suit which is commercial in nature.

2. The defendant, after getting summons in the abovesaid suit, instead of proceeding further, filed an application under Section 8 of Arbitration and Conciliation Act, 1996.

3. Such application has been allowed by the learned Trial Court vide order dated 08.02.2024.

4. Such order is impugned herein.

5. Learned counsel for the petitioner submits that without prejudice to its rights, it does not challenge the abovesaid order with respect to appointment of Arbitrator, though, there is no validly executed Arbitration Agreement.

6. Notice was also issued to the opposite side for the limited purpose of appointment of an Arbitrator, with mutual consent.

7. Learned counsel for respondent/defendant appears pursuant to such notice and submits that, though, the dispute was, rightly, referred by the CM(M) 3538/2024 2 learned Trial Court under Section 8 of Arbitration and Conciliation Act, 1996, there is no requirement of appointing any Arbitrator, as the claim has already become time-barred. He submits that such contention can always be looked into by this Court before making any formal order regarding appointment of Arbitrator.

8. Apparently, there is no consensus with respect to appointment of Arbitrator. The clause in question, however, mentions about the appointment of Arbitrator, unilaterally, which is, otherwise, in teeth of specific observation made in Perkins Eastman Architects DPC and Anr. vs. HSCC (India) Ltd.:

9. Learned counsel for the petitioner, however, submits that since the opposite side is not agreeable for appointment of an Arbitrator, while reserving its other rights and contentions, they would move appropriate application under Section 11(6) of Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator.

10. The present petition stands disposed of in aforesaid terms. All the rights and contentions of the parties are left open.

11. Needless to say, it is open to petitioner to move any such application under Section 11(6) of Arbitration of Conciliation Act, 1996.

JUDGE MAY 2, 2025/sw/JS