SNAP ON TOOLS PRIVATE LIMITED v. MS METRICS APPLICATIONS

1. The present petition has been filed under Section 11(4) and (6) of the Arbitration and Conciliation Act, 1996 (hereinafter ‘the A&C Act’) seeking appointment of a Sole Arbitrator to adjudicate the disputes between the parties. The disputes between the parties have arisen in context of an Authorised Reseller Agreement dated 25.05.2019 (hereinafter ‘the agreement’). SACHIN DATTA, J. (Oral)

2. Under the said agreement, the respondent was engaged as the ‘Authorised Reseller’ of the products manufactured by the petitioner. Disputes between the parties have arisen on account of alleged non-payment by the respondent of its monetary dues under the Agreement.

3. Clause 16 of the said agreement contains the arbitration clause as under:-

In the event of any dispute or difference between the Parties in connection with this Agreement, the Parties shall use all reasonable endeavors to resolve the matter on an amicable basis. If one party serves a written notice to the other Party that a dispute or difference has arisen and the Parties are unable to resolve the dispute or difference within a period of thirty (30) days from the service of such notice, the dispute or difference shall be referred to arbitration as per the provisions of Article

16.2. 16.[2]

4. Disputes having arisen, a ‘Demand notice cum notice invoking arbitration’ dated 05.06.2024 was issued by the petitioner, calling upon the petitioner to settle the outstanding dues of the respondent and proposing the name of a person who could be appointed as the Sole Arbitrator to adjudicate the disputes between the parties, in case the respondent is unable to settle the said outstanding dues. No response thereto was submitted by the respondent. Arbitration Each of the Party agrees to resolve any dispute or difference arising out of or relating to or in connection with the validity, interpretation, breach or termination of this Agreement in terms of the (Indian) Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment thereof. The place of arbitration shall be New Delhi, India. The language of arbitration proceedings shall be English. The arbitration shall be conducted by Sole Arbitrator, appointed by & at the sole discretion of the Company. The arbitration award shall be final and binding upon the Parties. The cost of arbitration shall be borne equally by the parties to the Arbitration, if not decided by the Arbitration Tribunal.”

5. As the parties were unable to mutually agree to the appointment of a Sole Arbitrator to adjudicate the disputes between the parties, the present petition has been filed.

6. Notice was issued in the present petition on 12.09.2024. While the learned counsel for the respondent entered appearance on the last date of hearing, i.e. on 12.11.2024 and sought time for instructions, none appears for the respondent today. In the aforesaid circumstances, the present petition has been taken up for hearing and disposal.

7. Since the existence of the arbitration agreement is evident from a perusal of the Agreement, there is no impediment to appointing an independent Sole Arbitrator to adjudicate the disputes between the parties as prayed for, and as mandated in terms of the judgments of the Supreme Court in Perkins Eastman Architects DPC v. HSCC (India) Ltd (2020) 20 SCC 760, TRF Limited v. Energo Engineering Projects Ltd., (2017) 8 SCC 377, Bharat Broadband Network Limited v. United Telecoms Limited., 2019 SCC OnLine SC 547 and Interplay between Arbitration Agreements under the Arbitration & Conciliation Act, 1996 & the Indian Stamp Act, 1899, In re, 2023 SCC OnLine SC 1666 and SBI General Insurance Co. Ltd. v. Krish Spinning 2024 INSC 532.

8. Accordingly, Mr. Shashwat Bajpai, Advocate (Mob.: 9811208936) is appointed as the Sole Arbitrator to adjudicate the disputes between the parties.

9. Respondents shall be entitled to raise appropriate jurisdictional objections, if any, before the learned sole arbitrator which shall be duly considered by the learned sole arbitrator on merits.

10. The learned Sole Arbitrator may proceed with the arbitration proceedings subject to furnishing to the parties, the requisite disclosures as required under section 12 of the A&C Act; and in the event there is any impediment to the appointment on that count, the parties are given liberty to file an appropriate application in this court.

11. The learned Sole Arbitrator shall be entitled to fee in accordance with the IVth Schedule to the A&C Act; or as may otherwise be agreed to between the parties and the learned Sole Arbitrator.

12. 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.