Indo Vinyls Limited v. Omaxe Ltd

Delhi High Court · 01 Aug 2011 · 2011:DHC:6931
Vipin Sanghi
2011:DHC:6931
civil petition_allowed

AI Summary

The Delhi High Court appointed a sole arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 to adjudicate disputes between the petitioner and respondent no.1, holding that respondent no.2 cannot be impleaded without the petitioner's consent.

Full Text
Translation output
3. a HIGH COURT OF DELHI ARB.P. LI,I2OIL INDO VINYLS LIMITED
Through: ..... Petitioner Mr. Deepak Dhingra, Advocate.
VETSUS
OMAXE LTD & ANR ..... Respondent
Through: Mr. Jaspreet Singh, for Mr. Harish Kumar, counsel for respondent no,1.
Ms, Kamal Lata, counsel for respondent no.2, CORAMT
HON',BLE MR. JUSTTCE VtPtN SANGHI
ORDER o/o Of..O8.2Of.1 This petition has been preferred under Section 11 of the Arbitration and Conciliation Act to seek the appointment of a Sole Arbitrator in terms of clause 51 of the agreement dated 24.04.2007 executed between the petitioner and respondent no.1, M/s Omaxe Ltd. The case of the petitioner is that the petitioner had booked a residential flat in a project of the respondent, known as "The Forest" in Faridabad. The petitioner claims to have made payment of over Rs. 58 lakhs to respondent no.1 in relation to the said booking. The project was, under the terms of the agreement, agreed to be completed within a period of 30 months from the date of signing of the agreement as per clause 30(a). The submission of the petitioner is that the petitioner received a communication dated 13.04.2009 from respondent no.1 informing that respondent no.1 has transferred all its rights and liabilities in relation to the aforesaid project in favour of respondent no.2. The petitibner was required to execute a fresh agreement with respondent no.2. Under the
\1 { 2011:DHC:6931 'f' C L4 I garb of this agreement, the respondents sought to secure another 30 months period to complete the project. The petitioner has not signed the fresh agreement with respondent no.2, which was on the same lines as the one signed with petitioner no.1.
Since the agreement, which has been signed between the parties, is only between the petitioner and respondent no.1 (dated 24.04.2007), in my
VieW, respondent no.2 cannot be impleaded as a party respondent and no arbitration can be held between the petitioner and respondent no.2. Merely because respondent no.1 claims to have transferred its rights and obligations under the agreement with the petitioner in favour of respondent no.2, that by itSelf would not relieve respondent no.1 of its obligations to the petitioner under the agreement. The said arrangement between the petitioner and respondent no.1 is an inter se arrangement with which the petitioner is not concerned. The petitioner has not accepted the assignment of the agreement by respondent no.1 in favour of respondent no.2.
From the aforesaid, it is evident that disputes have arisen between the petitioner and respondent no.1. The said claims/disputes are alive and are required. to be referred to arbitration. As per the agreement, the disputes have to be adjudicated upon in terms of the Arbitration and Conciliation Act,
JUDGMENT

1996. As the number of Arbitrators have not been specified, the same has to be done by a Sole Arbitrator. The parties have not been able to mutually agree upon an Arbitrator despite the petitioner invoking the arbitration agreement on 28.10.2010. Accordingly this petition is allowed. I appoint Mr. Justice J.M.Malik, retd. Judge as the Sole Arbitrator, who shall deal with the disputes between the petitioner and respondent no.1. The tt,.a {t petitioner shall file its statement of claim before the Arbitrator with supporting documents within four weeks from today. The respondent may file the counter statement/counter claims with supporting documents within four weeks thereafter. The parties shall also conduct admission/denial of documents on affidavits within the same period. The parties shall appear before the learned Arbitrator on 03.10.2011 at 4.30 p.rir with suggested issues. In case the said date is not convenient, the learned Arbitrator may fix a fresh date in consultation with the parties. The fees of the learned Arbitrator shall be paid in accordance with the schedule of fee of the Delhi High Court Arbitration Centre. lt is hoped that the Arbitrator shall conclude the proceedings and shall render the award within six months of his entering upon the reference. A copy of this order be communicated to the learned Arbitrator. \a AUGUST OI., 2OI.[1] as vtPtN sANGHt, J ) fuW/sa1o/,t% d,wfi^t Wr/ @q' fw b'fiW* I