The Delhi High Court referred a dispute between M/S Rathi Steel and Power Limited and Industrial Energy to DIAC arbitration under Section 11(6) of the 1996 Act, noting the respondent raised no objection to the reference.
The dispute is referred to DIAC to appoint an arbitrator according to the parties' agreement and DIAC rules.
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M/S RATHI STEEL AND POWER LIMITED .....Petitioner Through: Mr. Ashish Khorana, Adv.
versus
INDUSTRIAL ENERGY .....Respondent Through: Mr. Aadhar Nautiyal, Adv.
%
CORAM: HON'BLE MR. JUSTICE C. HARI SHANKAR O R D E R 06.08.2024
1. This petition under Section 11(6) of the Arbitration and Conciliation Act 19961 seeks reference of the dispute between the parties to arbitration.
2. Mr. Aadhar Nautiyal, learned Counsel for the respondent, has no objection to the reference of the dispute to arbitration, without prejudice to the right and contention of the respondent.
3. The dispute arises in the context of Purchaser Order dated 3 May 2022 executed between the petitioner and the respondent, which contains the following arbitration clause:
“18. All disputes, differences whatsoever, which shall arise between the parties hereto at any time, touching this contract or contraction or application thereof or any clause or thing herein contained of the rights, duties and liabilities of either party otherwise in connection therewith shall be referred to the Arbitration of our General Manager (Commercial). The decision in such arbitration shall be final and binding on both the parties. All
1 “the 1996 Act” hereinafter Signature Not Verified Digitally Signed By:AJITARB.P. 312/2023 KUMAR Signing Da te:0 7.08.2024 16:48:00
Signature Not Verified
Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date: 07.0 8.2024 16:47:04
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such arbitration proceeding shall be held in Delhi (India) and shall be in accordance with and subject to the provision of The Indian Arbitration Act, 1940 or any statutory modification or enactment thereof for the time being on force. In case of any dispute with regard to this purchase order, the same shall be subject to the jurisdiction of Courts at Delhi (India) only and the Indian Laws shall be applicable.”
4. The dispute having arisen between the parties, the petitioner addressed a notice dated 19 December 2022, seeking resolution of the dispute by arbitration. The respondent did not reply. The petitioner has, therefore, instituted the present petition before this Court under Section 11(6) of the 1996 Act for referring the dispute to arbitration.
5. The claim of the petitioner against the respondent is in the region of ₹ 18.6 lakhs.
6. The dispute stands referred to DIAC, which would appoint a suitable arbitrator to arbitrate on the dispute between the parties.
7. The arbitration would take place in accordance with the rules and regulations of the DIAC.
8. The learned arbitrator would be entitled to fees as per the schedule of fees maintained by the DIAC.
9. The learned arbitrator is also requested to furnish the requisite disclosure under Section 12(2) of the 1996 Act within a week of entering on the reference.
10. All contentions of the parties are left open to be decided in the
Signature Not Verified Digitally Signed By:AJITARB.P. 312/2023 KUMAR Signing Da te:0 7.08.2024 16:48:00
Signature Not Verified
Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date: 07.0 8.2024 16:47:04
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arbitral proceedings.
11. This Court has not expressed any opinion on any aspect of the matter.
12. The petition stands disposed of in the aforesaid terms.
C. HARI SHANKAR, J.
AUGUST 6, 2024 dsn
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Signature Not Verified
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Page 3 of 3 Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date: 07.0 8.2024 16:47:04
Digitally Signed By:AJITARB.P. 312/2023 KUMAR Signing Da te:0 7.08.2024 16:48:00
2 issues framed by the court
Whether to refer the dispute between the parties to arbitration.
Whether the respondent has conceded no objection to the reference.
1 provisions across 1 enactments
M/S RATHI STEEL AND POWER LIMITED
INDUSTRIAL ENERGY
C. HARI SHANKAR
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
