DELKON TEXTILES PVT. LTD v. UNION OF INDIA

1. The present petition has been filed on behalf of the petitioner under Section 14 and 15 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act”) seeking the following reliefs: “(a) Substitute an Arbitrator under Sections 14 and 15 (2) of the Arbitration and Conciliation Act, 1996, {in place of the earlier Arbitrator Mr. Manoj Kohli who has withdrawn himself from the proceedings), to facilitate the arbitration proceedings and adjudicate the disputes and differences between the parties in Case Reference No. DAC/2759/03- 2020 conducted under the aegis of the DIAC and thereafter, pronounce the arbitral award. (b) Pass any other Order or Orders that this Hon'ble Court deems fit in the interest of equity and justice and the facts and circumstances of the case.”

2. Learned counsel appearing on behalf of the petitioner submitted that the disagreements and conflicts between the petitioner and the respondents stem from a Purchase Order dated 23rd November, 2017. It is further submitted that the petitioner herein filed the Arbitration Petition bearing No. 713 of 2019 whereby this Court vide order dated 25th February, 2020 referred the disagreements/ disputes arising between the parties to Mr. Manoj Kohli, Advocate to adjudicate upon the same.

3. It has been submitted on behalf of the petitioner that subsequent to fulfilment of the necessities the parties herein appeared before the learned arbitrator for adjudication of the disputes. It is further submitted that both, the petitioner and the respondents have filed their respective statements of claim and defence. In the arbitration proceedings, issues were framed, and both parties presented evidence. The matter was thereafter listed for final arguments that were scheduled on 5th November, 2022.

4. It has been submitted on behalf of the petitioner that Mr. Manoj Kohli, the Sole Arbitrator appointed by this Court, vide e-mail dated 5th November, 2022 withdrew himself from the arbitration proceedings, and the intimation thereto was received by the petitioner from the Delhi International Arbitration Centre (DIAC) vide letter dated 22nd November,

2022.

5. In light of the foregoing paragraphs, it has been submitted on behalf of the petitioner that to adjudicate upon the disputes and disagreements between the parties that have developed under the Purchase Order dated 23rd November, 2017, a new Arbitrator may be appointed. It is further submitted that the petitioner is the claimant in the proceedings and has asserted a sum of Rs. 18,22,723/- claim against the respondents, with interest.

6. Learned counsel appearing on behalf of the petitioner submitted that the petitioner would suffer severe prejudice if a new Arbitrator is not appointed to adjudicate upon the disagreements.

7. Learned counsel appearing for the respondent appearing on advance notice has no objection if this Court allows the prayer made by the petitioner by way of the present petition and appoint a Sole Arbitrator to adjudicate the dispute between the parties.

8. Heard the learned counsel for the parties and perused the record.

9. As agreed on behalf of the parties, this Court finds it appropriate to appoint a new arbitrator to adjudicate upon the disagreements and disputes arising between the parties qua the Purchase Order dated 23rd November, 2017. Hence, the following order: ORDER

(i) Mr. Samir Ali Khan, Advocate is appointed as a sole arbitrator to adjudicate the disputes between the parties which have arisen under the Purchase Order dated 23rd November, 2017;

(ii) The learned sole arbitrator, before entering the arbitration reference, shall ensure the compliance of Section 12(1) of the Arbitration and Conciliation Act, 1996;

(iii) The learned sole arbitrator shall be paid fees as prescribed under The Delhi International Arbitration Centre (DIAC) (Administrative Cost and Arbitrators Fees) Rules, 2018 as amended vide notification dated 15th November, 2022;

(iv) At the first instance, the parties shall appear before the learned sole arbitrator within 10 days from today on a date which may be mutually fixed by the learned sole arbitrator;

(v) All contentions of the parties are expressly kept open.