Giriraj Maheswari v. Delhi Urban Shelter Improvement Board

1. The present petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred as ‘the A&C Act’) seeks appointment of a Sole Arbitrator to adjudicate the disputes between the parties.

2. The disputes stem from an e-auction conducted by the respondent for “allotment of vacant land for operating the authorized parking site on temporary basis under the jurisdiction of Delhi Urban Shelter Improvement Board”.

3. The respondent accepted the petitioner’s bid vide letter of acceptance dated 13.12.2023 and the Parking Site near E-3/126, Nand Nagri in ward no.243, Shahdra North Zone was allotted to the petitioner, being the highest bidder.

4. The arbitration clause in the agreement between the parties is in the following terms: -

5. Disputes between the parties have arisen on account failure on the part of the respondent to provide peaceful possession of the parking site to the petitioner.

6. Consequently, the petitioner sent communications to the respondent, requesting peaceful possession of the parking site. Meetings were initiated to urge the respondent to clear encroachments and hand over the parking site. On 24.05.2024, a meeting chaired by the Deputy Director (RP Cell) of the respondent directed the officials to address the encroachment and provide possession by 31.05.2024, failing which the petitioner’s deposited funds were to be refunded. However, these directives were not implemented, and no effective action was taken by the respondent.

7. Thereafter, the petitioner sent a final request on 07.06.2024, urging the respondent to refund the payments made. Having received no positive response the petitioner invoked the arbitration clause via letter dated 26.07.2024, followed by a reminder on 16.08.2024. However, the respondent failed to reply and instead issued a show-cause notice dated 13.08.2024, to which the petitioner responded on 26.08.2024.

8. The petitioner has now approached this Court, through the present petition, seeking the appointment of a Sole Arbitrator to adjudicate the dispute/s.

9. Learned counsel for the respondent does not dispute the existence of the Arbitration Agreement and accedes to appointment of an independent Sole Arbitrator.

10. Accordingly, Ms. Swati Surbhi, Advocate (Mob. No. +91

9899999785) is appointed as the Sole Arbitrator to adjudicate the disputes between the parties.

11. The respondent shall be entitled to raise preliminary objections as regards jurisdiction/arbitrability, which shall be decided by the learned arbitrator, in accordance with law.

12. The learned Sole Arbitrator may proceed with the arbitration proceedings subject to furnishing to the parties requisite disclosure as required under Section 12 of the A&C Act.

13. At request of respective counsel, it is directed that the arbitration shall take place under the aegis of and under the rules of the Delhi International Arbitration Centre (DIAC).