Allowed

M/S Singer India Limited v. M/S B.B.S Enterprises and Anr.

Delhi HC12 Feb 2024ARB.P./1097/2023

Case brief

AI extract

What is this about?

The Delhi HC allowed an arbitration petition under Section 11 of the Arbitration Act, appointing a Sole Arbitrator despite the respondents' absence. The court held a valid arbitration agreement existed, affirmed jurisdiction, and addressed service and fee arrangements.

What did the court decide?

Appointment of Ms. Kaveri Rawal as Sole Arbitrator; fee and costs to be shared equally; petitioner directed to approach arbitrator within 15 days.

M/S Singer India Limited Vs M/S B.B.S Enterprises and Anr. — Arbitration | Delhi HC (2024)

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$~5

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- ARB.P. 1097/2023

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M/S SINGER INDIA LIMITED ..... Petitioner

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Through: Ms. Shivani Sharma, Advocate.

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versus

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M/S B.B.S ENTERPRISES AND ANR ..... Respondents

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Through: None.

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CORAM:

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HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI

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O R D E R 12.02.2024

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By way of the present petition under section 11(6) of the Arbitration & Conciliation Act 1996 (‘A&C Act’ for short), the petitioner seeks appointment of an arbitrator to adjudicate upon the disputes that are stated to have arisen with the respondent from Dealership Agreement dated 12.08.2017 (‘Agreement’).

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Ms. Shivani Sharma, learned counsel for the petitioner has drawn the attention of this court to clause 21 of the Agreement, which comprises the arbitration agreement between the parties; and contemplates reference of disputes between them to arbitration in accordance with the A&C Act; with a further stipulation that arbitration would be conducted in New Delhi; also subjecting the contract between the parties to the jurisdiction of courts of law at New Delhi.

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As per the record, the petitioner invoked arbitration vide Notice dated 08.12.2022; to which the respondent has not sent any reply.

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Page 1 of 4

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ARB.P. 1097/2023

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This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 21/02/2024 at 14:33:56

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Notice on this petition was issued on 18.10.2023, including by dasti service, returnable for 08.12.2023.

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On 08.12.2023, the court recorded that as per the affidavit of service filed on their behalf, the petitioner had affirmed that the respondents had been served through speed-post, courier and WhatsApp. However, since no one was present on behalf of the respondents on that date, the court had directed the petitioner to take fresh steps for dasti service, returnable for the next date of hearing i.e., today.

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Though fresh affidavit of service is stated to have been filed, the same is not on record.

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Be that as it may, it is noticed that in the meantime, the respondents stand served through the Process Server of the Judge-in-Charge, Process Establishment Section, Kendrapara, Odisha as borne-out by the Process Server’s report received in the Registry of this court.

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It is further noticed that respondent No. 2 is the sole proprietor of respondent No.1/sole partnership concern.

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However, no one is present on behalf of the respondents when the matter is called-out today; nor has any reply been filed.

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In the circumstances, this court is satisfied that, having been duly served, the respondents have chosen not to be represented in the matter.

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The respondents are accordingly set ex-parte.

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Upon being queried, learned counsel for the petitioner submits that the quantum of their claim against the respondent is about Rs. 2.62 lacs.

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Page 2 of 4

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ARB.P. 1097/2023

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 21/02/2024 at 14:33:56

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Upon a conspectus of the averments contained in the petition and the submissions made, this court is satisfied that there is a valid and subsisting arbitration agreement between the parties; that this court has territorial jurisdiction to entertain and decide the present petition; and also that the disputes that are stated to have arisen between the parties as set-out inter-alia in invocation notice dated 08.12.2022 do not appear ex-facie to be non-arbitrable.

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Accordingly, the present petition is allowed; and considering the small amount in dispute Ms. Kaveri Rawal, Advocate (Cellphone No.: +91 9873277666) , who is present in court, is appointed as the learned Sole Arbitrator to adjudicate upon the disputes between the parties.

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The learned Arbitrator may proceed with the arbitral proceedings subject to furnishing to the parties requisite disclosures as required under section 12 of the A&C Act; and in the event there is any impediment to the appointment on that count, the parties are given liberty to file an appropriate application in this court.

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The learned Arbitrator shall be entitled to fee in accordance with Fourth Schedule to the A&C Act; or as may otherwise be agreed to between the parties and the learned Arbitrator.

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Parties shall share the arbitrator‘s fee and arbitral costs, equally.

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All rights and contentions of the parties in relation to the claims/counter-claims are kept open, to be decided by the learned Arbitrator on merits, in accordance with law.

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The petitioner is directed to approach the learned Arbitrator appointed within 15 days.

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Page 3 of 4

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ARB.P. 1097/2023

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 21/02/2024 at 14:33:56

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Though the learned Sole Arbitrator is present in court, and has been apprised of the order, let a copy of this order be also formally communicated by the Registry to the learned Sole Arbitrator.

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The petition stands disposed of in the above terms.

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Other pending applications, if any, also stand disposed of.

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The Registry is also directed to send a copy of this order to the respondents on the address and the e-mail ID available on record.

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ANUP JAIRAM BHAMBHANI, J

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FEBRUARY 12, 2024

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Page 4 of 4

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ARB.P. 1097/2023

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 21/02/2024 at 14:33:56

M/S Singer India Limited v. M/S B.B.S Enterprises and Anr.

Case brief

What is this about?

What did the court decide?

M/S Singer India Limited v. M/S B.B.S Enterprises and Anr.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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