J.K. Ahuja v. Indira Gandhi National Open University

1. The petitioner has filed the present petition under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of a sole independent arbitrator.

2. Brief facts as culled out from the petition are that the petitioner is a proprietor of M/s. Jay Kay Offset Printers, a Proprietorship who is running a printing press.

3. The petitioner entered into an agreement dated 1st May, 2008 with respondent for a period of three years which was subsequently extended for further period by letter dated 10th May, 2011.

4. By letter dated 2nd December, 2011, the respondent invited quotation to prepare 10000 diaries for the year 2012. By reply dated 9th December, 2011, the petitioner had submitted a quotation for the said diaries. By Work Order No.1G/MPDD/P-570/2011-12 dated 15th December, 2011, the respondent placed the order for printing of 10000 diaries for the year 2012 at 2013:DHC:2473 the agreed rate of `12,40,000/-.

5. The petitioner printed and supplied the said diaries for the year 2012 to the respondent and submitted the bill No.1723 dated 23rd January, 2012 for `12,58,740/- including VAT @5% to the respondent. However, the respondent failed to make the payment to the petitioner.

6. Thereafter, by various letters the petitioner requested to the respondent to release the payment. By letter dated 22nd August, 2012, the respondent asked the petitioner to appear before the Committee on 29th August, 2012 which was later on cancelled by the respondent. Finally, the petitioner sent a legal notice dated 11th December, 2012 to the respondent to pay a sum of `12,58,740/- along with interest @24% with effect from 24th February, 2012. Since there was arbitration clause in the Work Order, by the said notice, the petitioner requested the respondent to resolve the said dispute in terms of clause 4 of the agreement within thirty days of receipt of the same and in case of failure, the respondent was also requested to appoint an Arbitrator for adjudication of the dispute. However, no response was given by the respondent. By letter dated 9th January, 2013, the respondent sent a cheque for `4,48,710/- as part payment against the aforesaid bill. By letter dated 14th January, 2013, the petitioner requested for release of balance payment of `8,10,030/-. However, balance payment has not been received till date. Hence, the present petition.

7. When the matter is listed for orders, a statement is made by the counsel appearing on behalf of the respondent that without prejudice to the rights and contentions of the respondent to contest the matter on merit before the learned Arbitrator, prayer made in the present may be allowed.

8. Accordingly, with the consent of the learned counsel for the parties, the disputes are referred to the arbitration, to be conducted under the aegis of Delhi High Court Arbitration Centre and its rules and the fee shall also be paid to the sole arbitrator as per rules thereof. The Arbitrator appointed by the Delhi High Court Arbitration Centre shall give prior notice before commencing the proceedings. The petition stands disposed of.

9. A copy of this order be communicated to the Secretary to the Arbitration Centre forthwith. Copies of the same be also given dasti to the learned counsel for the parties.

JUDGE MAY 13, 2013