GREENCROSS EXPORT PVT. LTD. v. INNOVARE LABS PVT. LTD

1. This petition has been filed by Petitioner under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the ‘1996 Act’) for appointment of a sole Arbitrator for adjudication of disputes between the parties.

2. Petitioner and Respondent entered into an Exclusive Representation Agreement on 03.01.2020 whereby Respondent appointed the Petitioner Company as its exclusive representative for the entire territory of the Republic of Russia to assist and help the Respondent in marketing and conducting business in Russia, Belarus, Uzbekistan, Kazakhstan and Ukraine for bulk drug products manufactured by the Respondent. According to the Petitioner, he procured two orders for the Respondent in the first year itself followed by another order in the second year, however, Respondent all of a sudden vide letter dated 16.02.2022 intimated that it had terminated the contract and would enter into a new Agreement on revised terms, if the need so arose.

3. Correspondence was exchanged between the parties wherein the Petitioner ventilated its grievances that the contract was illegally terminated on account of which it had suffered a huge loss. Not getting any positive response from the Respondent, Petitioner sent a notice dated 04.02.2023 to the Respondent demanding the outstanding amount due on account of the loss suffered and invoking the arbitration clause incorporated in the contract seeking appointment of a sole Arbitrator. Respondent replied to the notice denying the liability to pay any amount to the Petitioner. This constrained the Petitioner to file the present petition.

4. Issue notice.

5. Mr. Jude James, learned counsel accepts notice on behalf of Respondent and submits, on instructions, that Respondent has no objection to appointment of a sole Arbitrator provided the arbitration proceedings are conducted under the aegis of Delhi International Arbitration Centre (‘DIAC’).

6. I have heard the learned counsels for the parties and examined the arbitration clause in the Agreement dated 03.01.2020, which reads as follows:- “ARTICLE 7- GOVERNING LAW AND SUBMISSION TO JURISDICTION

7. In view of the arbitration agreement existing between the parties and with their consent, this Court appoints a sole Arbitrator to adjudicate the disputes between the parties. Accordingly, following directions are issued:- (a) Mr. Justice Swatanter Kumar, Former Judge, Supreme Court of India, (Mob. No. 9560413636) is appointed as a sole Arbitrator to adjudicate the disputes between the parties pertaining to and in respect of the agreement dated 03.01.2020. The arbitration proceedings shall be conducted under the aegis of DIAC; (b) Learned Arbitrator is requested to furnish a declaration in terms of Section 12 of the 1996 Act prior to entering upon reference; and

(c) Fees of the learned Arbitrator shall be regulated in terms of the Fourth Schedule of the 1996 Act.

8. Needless to state that this Court has not expressed any opinion on the merits of the case and all rights and contentions of the parties are left open to be decided by the learned Arbitrator, in accordance with law.

9. Petition stands disposed of alongwith the pending application in the aforesaid terms. O.M.P.(I) (COMM.) 220/2023 and I.A. 12823/2023 (stay)

10. This petition has been filed by the Petitioner under Section 9 of the 1996 Act seeking the following prayers:

11. Issue notice.

12. Mr. Jude James, learned counsel accepts notice on behalf of Respondent.