M/S Laxmi Construction Co v. Union of India

Delhi High Court · 03 Jun 2011 · 2011:DHC:6951
Vipin Sanghi
ARB.P. L94/2011
2011:DHC:6951
arbitration petition_allowed Significant

AI Summary

The Delhi High Court held that the question of arbitrability of certain claims must be decided by the Arbitral Tribunal and not by the appointing authority, and accordingly referred the disputed claims to arbitration.

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JUDGMENT

5. t< HIGH COURT OF DELHI ARB.P. t94120t7 M/S LAXMI CONSTRUCTION CO ... PCtitiONCT Through: Mr. Manish Bishnoi, Advocate' --J t VETSUS UNION OF INDIA Through: ..... ResPondent Mr. Himanshu Kaushik, Advocate.

CORAM: FtoN'BLE MR. JUSTICE VIPIN SANGHI ORDER o3.06.2011 l.A. No. 997OI2OL1 ExemptionaIlowed,subjecttoa||justexceptions. ARB.P. L94/201 L lssue notice. Counsel for the respondent accepts notice on { behalf of Mr. Neeraj Atri, Standing Counsel' ',t This petition under Section 11 has been preferred to seek reference of Claims No. 5, 6 & 7 and claim for interest before the Arbitral Tribunal already constituted by the respondent. While referring the claims of the petitioner to arbitration, the appointing authority has not referred the aforesaid claims on the ground that they are excepted matters. However, this dispute as to whether or not they are excepted matters, cannot be determined by the appointing authority, or one of the parties to the dispute. lt would be for the 2011:DHC:6951 Arbitral Tribunal to decide this issue as held by the supreme court in National Insurance company Limited vs, Boghara Polyfab PrivateLimited,(2009)lscc26T.Accordingly,thispetitionis allowed. The aforesaid claims of the petitioner are also referred for adjudication to the Arbitral Tribunal constituted by the respondent. lt shall be open to the respondent to dispute the arbitrability of the said claims, and also to defend the said claims on merits as well. The Arbitral Tribunal shall decide all such issues, as and when raised by the parties. The petitioner may file amended statement of claim before the Arbitral Tribunal within two weeks. The petition stands disPosed of. t JUI€E 03, 2o1r. 'BSR' GHl, J 2011:DHC:6951

JUDGMENT