WWF Security Services Pvt Ltd v. Indian Oil Corporation Limited

1. The present petition has been instituted under Section 11(6) of the Arbitration and Conciliation Act, 1996 (the 1996 Act) by the petitioner, seeking appointment of an Arbitrator to adjudicate the disputes which have arisen between the parties in connection with the Agreement dated 28.04.2023.

2. On issuance of notice, Mr. Amit Meharia, learned counsel appeared on behalf of the respondent and on instructions, submits that the respondent does not oppose the appointment of an Arbitrator to decide the dispute in question.

KUMAR KAURAV

3. Heard learned counsel appearing on behalf of the parties.

4. A perusal of the petition would reveal that the agreement dated 28.04.2023 pertains to an outsourcing contract for the operation and maintenance of battery-operated fork-lift trucks (FLTs) of 1.[5] MT capacity, for loading of polymer at the IOCL Polymer Warehouse, Panipat. The record indicates that disputes have arisen between the parties in relation to the said contract, and in that regard, the petitioner issued a notice dated 25.06.2023 under Section 21 of the Arbitration and Conciliation Act, 1996, invoking the arbitration clause contained in Clause 10 of the Contract Agreement. Upon failure of the respondent to appoint an arbitrator in response to the said notice, the petitioner has approached this Court under Section 11(6) of the Act seeking appointment of an arbitrator.

5. The Court takes note of Clause 10 of the Agreement dated 28.04.2023, which reads as under:- “10. Arbitration: 10.[1] All in case any dispute arises between the contractor and the owner and no settlement can be arrived at mutually, the contractor/owner may ask for the appointment of an arbitrator as per the agreement. Following points shall be kept in view in such cases: It should be ensured that the appointment of arbitrator is made within a period stipulated under the provisions of the Arbitration/Conciliation. 10.[2] Venue of the arbitration shall be New Delhi, provided that the Arbitrators, with the consent of the owner and contractor, agree upon any other venue. The parties hereby agree that the court in State of Delhi alone shall have jurisdiction to entertain any application or any award/s made by the Sole Arbitrator or other proceedings in respect of anything arising under this Agreement. The performance of all the obligations under the contract shall not stop for any reason whatsoever during the said dispute/proceeding unless the contractor is specifically directed by corporation to desist from working in this behalf. 10.[3] The parties hereby agree that the court in city of Delhi alone shall have jurisdiction to entertain any application or any award/s made by the Sole Arbitrator or other proceedings in respect of anything arising under this Agreement. 10.[4] This Agreement covers entire understanding between the parties including the terms and conditions detailed in tender document/LOI/Work Order. No alteration / variation of any of the terms of this Agreement shall be valid unless made with the consent of both the parties and evidenced in writing duly signed by authorized representatives of both the parties. 10.[5] The performance of all the obligations under the Contract shall not stop for any reason whatsoever during the said dispute/proceeding, unless the Vendor is specifically directed by Corporation to desist from working in this behalf. 10.[6] The venue of arbitration shall be New Delhi and the language of proceedings shall be English.”

6. In view of the existence of a valid arbitration clause and the admitted position that disputes have arisen, this Court is inclined to appoint an Arbitrator for adjudication of the disputes arising out of the Agreement dated 28.04.2023.

7. Accordingly, Mr. Shubham Shukla (Mobile No +91-8182005532; Email ID: office.advshubhamshukla@gmail.com) is appointed as the sole Arbitrator.

8. The arbitration would take place under the aegis of the Delhi International Arbitration Centre (DIAC) and would abide by its rules and regulations. The learned Arbitrator shall be entitled to fees as per the Schedule of Fees maintained by the DIAC. The learned arbitrator is also requested to file the requisite disclosure under Section 12 (2) of the Act within a week of entering on reference.

9. The Registry is directed to send a receipt of this order to the learned arbitrator through all permissible modes, including through e-mail.

10. 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. Needless to state, the Court has not expressed any opinion/view on the merits of the case.

11. The instant petition stands disposed of in the aforesaid terms.