Allowed

M/S Chamunda Laboratories and Projects Pvt. Ltd. v. M/S Beyond Stay Pvt. Ltd. & Anr.

Delhi HC10 Jan 2024ARB.P./533/2023

Case brief

AI extract

What is this about?

Delhi High Court allowed the petition under Section 11 to appoint Ms. Ruchi Sindhwani as sole arbitrator. The court directed that proceedings be conducted under DIAC Rules and reserved merits for the arbitrator.

What did the court decide?

Appointment of Ms. Ruchi Sindhwani as sole arbitrator; referral to DIAC proceedings; reservation of questions on maintainability and merits.

M/S Chamunda Laboratories and Projects Pvt. Ltd. Vs M/S Beyond… — Arbitration | Delhi HC (2024)

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$~1

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- ARB.P. 533/2023 & I.A. 9319/2023

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M/S CHAMUNDA LABORATORIES AND PROJECTS PVT.

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LTD. ..... Petitioner

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Through: Mr. Rahul Sharma, Mr. Ashish Dogra, Mr. Atharv Bhardwaj, Mr. Ashish Kr. Sharma, Advocates.

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versus

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M/S BEYOND STAY PVT. LTD. & ANR. ..... Respondents Through: Mr. Ajay Choudhary, Advocate.

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CORAM: HON’BLE MR. JUSTICE PRATEEK JALAN

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O R D E R

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% 10.01.2024

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The petitioner has filed this petition under Section 11 of the Arbitration & Conciliation Act, 1996 [“the Act”], for appointment of an arbitrator to adjudicate disputes between the parties under two agreements dated 23.04.2019 entitled “Hotel Management Agreement” [“HMA”] and “License Agreement” [“LA”].

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Both agreements contain arbitration clauses (Clauses 14.5 of the HMA and 14.5 of the LA), which provide for arbitration by a sole arbitrator. Delhi has been designated as the venue of the arbitration. It has specifically been provided that in the absence of consensus over the appointment of an arbitrator, either party would be at liberty to apply to this Court for appointment.

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The respondent has entered appearance through counsel and filed a reply. The principal objection taken in the reply is that the agreements are

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Page 1 of 3

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ARB.P. 533/2023

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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 13/05/2024 at 12:13:40

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unstamped or insufficiently stamped. For this purpose, the respondent has cited the Constitution Bench judgment of the Supreme Court in NN Global Mercantile (P) Ltd. v Indo Unique Flame Ltd. [(2023) 7 SCC 1] [“ NN Global ”], dated 25.04.2023. However, learned counsel for the respondent, concedes that this objection no longer survives as N.N Global has been overruled by a seven Judge Bench of the Supreme Court vide judgment dated 13.12.2023 in Curative Petition (C) No. 44/2023 and connected matters ( In Re: Interplay Between the Arbitration Agreements under the Arbitration and Conciliation Act, 1996 and the Indian Stamp Act, 1899 ).

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In view of the above, it is submitted that an arbitrator may be appointed to adjudicate the disputes between the parties under the aforesaid agreements, leaving all the questions open for adjudication by the learned arbitrator.

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For the aforesaid reasons, the petition is allowed and the parties are referred to arbitration of Ms. Ruchi Sindhwani, Advocate (Tel No: 9811533510)

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With the consent of learned counsel for the parties, it is directed that the arbitration will be conducted under the aegis of the aegis of Delhi International Arbitration Centre, Delhi High Court, Shershah Road, New Delhi [“DIAC”]. The proceedings will be governed by the Rules of DIAC, including as to remuneration of the learned Arbitrator.

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The learned Arbitrator is requested to furnish a declaration under Section 12 of the Act, prior to entering upon the reference.

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It is made clear this Court has not adjudicated the rights and contentions of the parties on maintainability or on merits, and all contentions are reserved for adjudication by the learned arbitrator.

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Page 2 of 3

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ARB.P. 533/2023

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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 13/05/2024 at 12:13:40

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The petition, alongwith pending application, stands disposed of in the aforesaid terms.

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PRATEEK JALAN, J

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JANUARY 10, 2024 “Bhupi”/

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Page 3 of 3

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ARB.P. 533/2023

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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 13/05/2024 at 12:13:40

M/S Chamunda Laboratories and Projects Pvt. Ltd. v. M/S Beyond Stay Pvt. Ltd. & Anr.

Case brief

What is this about?

What did the court decide?

M/S Chamunda Laboratories and Projects Pvt. Ltd. v. M/S Beyond Stay Pvt. Ltd. & Anr.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

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