IACM Smart Learn Ltd v. Dr. Kanwal Singh Solanki

Delhi High Court · 20 May 2021 · 2021:DHC:1657
C. Hari Shankar
OMP (T) (COMM) 22/2021
2021:DHC:1657
civil other

AI Summary

The Delhi High Court held that a sole arbitrator appointed unilaterally in violation of a contractual clause is incapable of continuing and referred the parties to DIAC for appointment of a substitute arbitrator.

Full Text
Translation output
OMP (T) (COMM) 22/2021
HIGH COURT OF DELHI
O.M.P. (T) (COMM.) 22/2021 & I.A.2918/2021
IACM SMART LEARN LTD ..... Petitioner
Through: None
VERSUS
DR. KANWAL SINGH SOLANKI ..... Respondent
Through: Mr. Vichitra Kumar and Mr.Inder Chand, Advs. with respondent
CORAM:
HON'BLE MR. JUSTICE C. HARI SHANKAR
JUDGMENT

1. There is no appearance on behalf of the petitioner. O R D E R (O R A L) % 20.05.2021 (Video-Conferencing)

2. I have heard Mr. Vichitra Kumar, learned Counsel for the respondent.

3. As is noted in the order dated 25th February, 2021, the appointment of Mr. Ram Bhagat Singh, presently functioning as Sole Arbitrator arbitrating on the disputes between the parties was in the teeth of Clause 10 of the lease deed dated 9th August, 2019, between the parties, which required the arbitrator to be appointed by both parties. Unilateral appointment of the arbitrator was, therefore, clearly impermissible. Accordingly, Mr. Ram Bhagat Singh is rendered de 2021:DHC:1657 OMP (T) (COMM) 22/2021 jure incapable of continuing to function as the Arbitrator within the meaning of Section 14(1) of the Arbitration & Conciliation Act, 1996.

4. Mr. Kumar, cognizant of this position, does not oppose the prayer for an alternate arbitrator being appointed by the Court.

5. As such, without expressing any opinion on any of the contentions in the petition or as advanced by this Court and recorded in the order dated 25th February, 2021, the present petition is disposed of by referring the parties to the Delhi International Arbitration Centre (DIAC), who would appoint a suitable substitute Arbitrator to arbitrate on the disputes between the parties. The arbitration shall be conducted under the aegis of the DIAC and shall abide by the rules and regulations of the DIAC. The fees would also be determined by the DIAC in accordance with the schedule of fees maintained by it.

6. With the aforesaid observations, this petition alongwith pending application stands disposed of.

C.HARI SHANKAR, J MAY 20, 2021