Full Text
HIGH COURT OF DELHI
Date of
JUDGMENT
MRS UPINDERJIT KHURANA ..... Petitioner
Through: Mr Attin Shankar Rastogi, Advocate with Mr Shivkant Arora, Mr Mayank
Mahla, Mr Archit Chauhan and Ms Neha Rajpal, Advocates.
Through Mr Pawanjit S. Bindra, Senior Advocate with Mr Vinayak Marwah, Advocate.
VIBHU BAKHRU, J. (ORAL)
1. The petitioner has filed the present petition under Section 11(6) of the Arbitration and Conciliation Act (hereafter the ‘A&C Act’), inter alia, praying that a Sole Arbitrator be appointed to adjudicate the disputes between the parties arising out of the Agreement/Lease Deed dated 23.11.2016. 2021:DHC:2545
2. The parties had entered into Lease Deed dated 23.11.2016. In terms of the said Lease Deed, the petitioner had leased the premises located at Property No.3, New Haridwar Colony, Ranipur More, Haridwar-249407 to the respondent.
3. Concededly, disputes have arisen between the parties in respect of the said Lease Deed. The petitioner had issued a notice dated 22.03.2021, inter alia, calling upon the respondent to handover vacant possession of the demised premises on or before 31.05.2021 and also pay the outstanding amount quantified at ₹16,31,539/-.
4. The aforesaid notice was followed by another notice dated 04.06.2021 as the respondent had neither complied with the demands made by the petitioner nor responded to the notice dated 22.03.2021. In terms of the notice dated 04.06.2021, the petitioner also invoked the Arbitration Clause as included in the Lease Deed dated 23.11.2016 and appointed a former Additional Sessions & District Judge, Delhi, as the Sole Arbitrator.
5. The respondent responded to the said notice through its advocate contesting the claims made, on several grounds, including disputing the lease rent payable under the Lease Deed. However, the respondent did not dispute the execution of the Lease Deed.
6. The Lease Deed, in question, contains an arbitration clause that reads as under: “28 Disputes & Arbitration In the event of any dispute or difference between the Parties arising out of or in connection with this Agreement or with regard to performance of any obligations by either Party, the parties hereto shall use their best efforts to resolve such dispute or difference amicably by mutual negotiations. All disputes arising in connection with the Agreement which have not been amicably settled shall be referred to a Sole Arbitrator appointed jointly by both the Parties and the proceedings will be conducted as per the provisions of the Arbitration and Conciliation Act, 1996 (with such statutory amendment/ modification thereof). The arbitration shall be conducted and the reasoned award shall be rendered in English language and the venue of such Arbitration shall be at New Delhi. The award shall be reasoned award and shall be final and binding on all the parties.”
7. Mr Bindra, the learned senior counsel appearing on behalf of the respondent does not dispute the existence of the agreement to refer the disputes arising out of the Lease Deed to arbitration in terms of clause 28 of the Lease Deed. However, he has opposed the petition on two grounds. First, he submits that the parties have not made sincere endeavors to resolve the disputes amicably and failure of such endeavours is a pre-condition for referring the disputes to arbitration. Second, he submits that this Court would have no jurisdiction to entertain the present petition as the leased property in question is in Haridwar and the respondent is also a permanent resident at Haridwar.
8. Both the contentions are unmerited. The respondent has not taken any steps to initiate steps for an amicable resolution of the disputes even after the legal notice dated 22.03.2021 was served on the respondent. Thereafter, the respondent’s response dated 26.06.2021 to the notice dated 04.06.2021 also left little room for any amicable resolution. No overtures for an amicable resolution were made by the respondent even in response to the notice invoking arbitration. In the circumstances, it is apparent that parties have been unable to resolve their disputes amicably. In any view, since the respondent had not taken any steps for resolving the disputes amicably after receipt of notices, it is not open for the respondent to now complain that such endeavours were not made. In the given circumstances, the respondent’s contention that the petition is premature is a ruse and is, accordingly, rejected.
9. The contention that this Court does not have jurisdiction to entertain the present petition is also unmerited. The Arbitration Clause expressly provides that the arbitral proceedings will be held in New Delhi. There is no other clause in the Lease Deed that would indicate that the parties had agreed that the place or seat of arbitration would be at a place other than New Delhi.
10. At this stage, Mr Bindra submits that he is confident that the parties would be able to resolve their disputes and requests that sufficient time of three weeks be provided to the parties to do so.
11. In view of the above, this Court considers it apposite to allow the present petition but defer the appointment of the arbitrator to enable the parties to amicably resolve the disputes.
12. Accordingly, Mr. M.L. Sahni, ADJ (Retired) Mobile No.9312235138) is proposed to be appointed as the Sole Arbitrator to adjudicate the dispute between the parties in the event the parties are unable to resolve their disputes amicably.
13. The parties are at liberty to approach the Learned Arbitrator for eliciting his consent and necessary disclosure as required under Section 12(1) of the A&C Act. Let the same be furnished before the next date of hearing.
14. List on 07.09.2021.
VIBHU BAKHRU, J. AUGUST 18, 2021 nn