Full Text
HIGH COURT OF DELHI
Date of Decision: 22nd May, 2024
M/S VOLUNTEER FOR VILLAGE DEVELOPMENT ......Petitioner
Through: Mr. Naman Issrani and Mr. Bhumit Solanki, Advocates.
Through: Mr. Neeraj, Advocate.
JUDGMENT
1. The present Petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the “Act, 1996”) has been filed on behalf of the petitioner seeking appointment of Arbitrator.
2. Briefly stated, the petitioner is a state level non profit organisation based in Ukhrul District of Manipur. The respondent provides services to NGOs in the country to access corporate social responsibility funds. The petitioner upon receipt of an invitation visited the office of the respondent and they entered into a Fund Raising Services Agreement dated 29.02.2020 for Environment Awareness. As per Article 2 of the said Agreement it was agreed that the Organization shall be liable to pay the Service Provider the Service Charge of Rs.10,00,000/- for using the expertise service of the Service Provider along with taxes and other duties as prescribed by the Government from time to time. In compliance of the said Agreement, the petitioner made an advance payment of Rs.4,72,000/- including GST to the respondent. It is stated that despite fulfilling the terms and conditions of the Agreement by the petitioner, the respondent has failed to comply with the terms of the Agreement and did not refund any amount paid by the petitioner to the respondent.
3. Due to failure of respondent to comply with the terms of the Agreement, the petitioner sent a Legal Notice dated 21.08.2023 to the respondent for Invoking Arbitration clause in respect to fund raising Agreement dated 29.02.2020, however, there was no response receipt from the respondent to the said Legal Notice. The respondent is trying to escape its liability to make payment and has caused the petitioner to suffer innumerable loss of money. Hence, the petitioner has preferred the present petition and has claimed a total sum of Rs.22,09,500/- (Rs.12,09,500/- paid by the petitioner to the respondent and Rs.10,00,000/- towards mental pressure and loss of business) from the respondent.
4. Learned counsel for the parties submits that there could be no settlement in the Mediation and there is no objection to the appointment of the Arbitrator.
5. Submissions heard.
6. In view of the submissions made as well as Article 6 of the Agreement dated 29.02.2020 which provides for arbitration and the petitioner has raised the arbitrable disputes and without prejudice to the rights and contentions of the parties, the present petition is allowed. Ms. Radhika Dubey, Advocate, Mobile No.9810982927, is hereby appointed as the Arbitrator to adjudicate the disputes between the parties.
7. The parties are at liberty to raise their respective objections before the Arbitrator.
8. The fees of the learned Arbitrator would be fixed in accordance with the Fourth Schedule of the Act, 1996 or as consented by the parties.
9. This is subject to the Arbitrator making necessary disclosure as under Section 12(1) of the Act, 1996 and not being ineligible under Section 12(5) of the Act, 1996.
10. The arbitration shall be conducted under the aegis of Delhi International Arbitration Centre, Delhi High Court.
11. The parties are directed to contact the Arbitrator within one week of being communicated a copy of this Order to them by the Registry of this Court.
12. Accordingly, the present petition is disposed of in the above terms.
JUDGE MAY 22, 2024