Ecogreen Envirotech Solutions Ltd v. Leaseplan India Pvt Ltd

1. Both the petitions, one filed by Ecogreen Envirotech Solutions Ltd and the other by Leaseplan India Private Limited, under Section 11 ofthe Arbitration and Conciliation Act, 1996, seek appointment of a sole arbitrator. The arbitration agreement in question is contained in Clause 14.[2] of the Master Lease Agreement dated 10'*' March, 2017, which reads as under: - ARB.P.643/2020&ARB.P.821/2020 Page 1 of[4] 2021:DHC:4457 "Clause 14.[2] (i) - Arbitration and Jurisdiction (i) All disputes, differences, claims and demands arising under or pursuant to or concerning this Agreement shall be referred to Arbitration in accordance with the provisions ofthe Arbitration & Conciliation Act, 1996 or any statutory amendment or re amendment or re-enactment thereof,subject to thefollowing rules: (a)Arbitration shall be conducted by a sole arbitrator to be appointed mutually by theparties. (b) The language of arbitration shall he English and place of arbitration shall he Delhi.

(c) The respective costs of arbitration shall be borne equally by the parties in thefirst instance; however, the successfulparty shall he entitled to the costs of arbitration including legal and recovery costs.

(d) The arbitrator to be appointed hereunder shall be either a retired judge having held a position not lower than Additional District Judge or an advocate recognised by Bar Council ofIndia, having an experience ofnotless than 10years in practice. (e) The award shall he a speaking award and shall he binding on the parties."

2. The aforesaid arbitration clause inter alia provides that the arbitration shall be conducted by a sole arbitrator to be appointed mutually by the parties The arbitration clause has been invoked by Leaseplan India Private Limited vide notice dated 30"^ September,2020. However,since the parties could not mutually agree on the name of a sole arbitrator, the present petitions have been filed. The existence of the arbitration agreement is undisputed. Besides,there is also no disagreement between the parties,that disputeshaveindeed arisen and the same haveto bereferredto arbitration.

3. The only pointofdiscord thatrequires to be resolved arises in Arb.P. 821/2020 filed by Leaseplan India Private Limited, wherein two Respondents have been impleaded-(1)Ecogreen Envirotech Solutions Ltd. and (2) A2Z Infraservices Limited. The Petitioner therein, i.e. Leaseplan ARB.P.643/2020&ARB.P.821/2020 2 of[4] India Private Limited contends that although Respondent No. 2 is not a signatory to the Master Lease Agreement dated 10th March,2017,however, because Respondent No. 1 is a direct subsidiary ofRespondent No. 2, and also because Respondent No.2 has executed an irrevocable, unconditional and continuing Guarantee dated 10'^ March 2017 in favour of Leaseplan India Private Limited in respect ofthe obligations ofRespondent No.l under the afore-noted Master Lease'Agreement,it should also be made a party to the arbitration proceedings/referred to arbitration.

4. Ms.Aditi Tomar,Advocate appears for both the Respondents in Arb.

5. Since there is consensus between the parties,it would be in the fitness of things that all the parties are referred to arbitration. Both the counsels jointly pray that a retired judge of High Court be appointed as the sole arbitrator. In view ofabove,the present petitions are allowed. Hon'ble Ms. Justice Gita Mittal (Retd.), former Chief Justice of the Jammu & Kashmir High Court [Contact Number: +91 9818000220], is appointed as the Sole Arbitrator to adjudicate the disputes between the parties (i) Leaseplan India ARB.P.643/2020 &ARB.P.821/2020 Page 3 of[4] Private Limited, (ii) Ecogreen Envirotech Solutions Ltd., and (iii) A2Z Infraservices Limited, arising out of Master Lease Agreement dated 10th March,2017 and the Guarantee dated lO^'^ March,2017.

6. The parties are directed to appear before the Learned Arbitrator on 8^*^ March, 2021. This is subject to the arbitrator making the necessary disclosure under Section 12(1) and not being ineligible under Section 12(5) ofthe Arbitration and Conciliation Act, 1996.

7. The learned Arbitrator will be paid his fee in terms ofthe provisions of the Fourth Schedule appended to the Arbitration and Conciliation Act,

1996.

8. The Petition is allowed in the above terms.No order as to costs. SANJEEVNARULA,J FEBRUARY 24,2021 ms ARB.P.643/2020&ARB.P.821/2020 Page 4 of[4]