Allowed

M/S Annapurna Electric World v. M/S Hero Electric Vehicles Private Limited

Delhi HC7 Oct 2024ARB.P./982/2024

Case brief

AI extract

What is this about?

In this petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, the Delhi High Court appointed Ms. Bhawna Khanna as Sole Arbitrator to adjudicate a commercial dispute arising from a Dealership Agreement, due to the respondent's non-appearance and failure to appoint an arbitrator.

What did the court decide?

Appointment of Ms. Bhawna Khanna as Sole Arbitrator to adjudicate the dispute under the aegis of the Delhi International Arbitration Centre (DIAC).

M/S Annapurna Electric World Vs M/S Hero Electric Vehicles Private… — Arbitration | Delhi HC (2024)

¶1

$~9

¶2

IN THE HIGH COURT OF DELHI AT NEW DELHI

¶3

- ARB.P. 982/2024

¶4

M/S ANNAPURNA ELECTRIC WORLD

¶5

.....Petitioner

¶6

Through: Mr. Ankit Singhal, Ms. Ashish Mittal, Advs.

¶7

versus

¶8

M/S HERO ELECTRIC VEHICLES PRIVATE LIMITED

.....Respondent

Through:

CORAM:

HON'BLE MR. JUSTICE JASMEET SINGH

O R D E R

07.10.2024

This is a petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (“ 1996 Act ”) seeking appointment of a Sole Arbitrator from the panel of arbitrators of Delhi International Arbitration Centre (“ DIAC ”) for adjudication of disputes between the parties.

¶17

The facts are that the petitioner and the respondent entered into a Dealership Agreement dated 17.01.2021, whereby the petitioner was appointed as an exclusive dealer for sale and servicing of products and parts manufactured by the respondent. The Agreement was amended through Dealership Agreement dated 01.04.2021.

¶18

It is stated that since the respondent failed to supply requisite products and parts and failed to fulfil and honor the orders placed by the petitioner,

¶19

This is a digitally signed order.

¶20

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 15/10/2024 at 11:59:28

¶21

vide e-mail dated 03.08.2023, the petitioner was constrained to resign from its dealership and requested to transfer the balance funds lying with the respondent. On 03.08.2023 itself, the respondent in response issued a full and final settlement form to be filled by the petitioner for the settlement to be completed. The same was done by the petitioner, however, no response was received from the respondent. On 10.02.2024, the petitioner served a legal notice to the respondent. The finance department of the respondent, vide email dated 16.02.2024, acknowledged that certain sums were outstanding and due to the petitioner.

¶22

Since no response was received from the respondent, the petitioner invoked arbitration vide Legal Notice dated 16.04.2024.

¶23

The arbitration clause is Clause 23 of the Dealership Agreement dated 17.01.2021, which reads as under:-

¶24

“ Section 23

¶25

DISPUTE RESOLUTION

¶26

23.1 Any dispute arising out of or in relation to the breach of the working of, to the interpretation of to the constructive meaning effect in relation to, in respect of this Agreement shall be attempted to be resolved in good faith by both parties.

¶27

23.2 If disputes arising out of or in relation to the breach of, the working or, arising to or relating to the present Agreement, interpretation or construction of the present Agreement cannot be amicably resolved within 30 days, the matter will be finally resolved by reference to arbitration under a sole arbitrator, in accordance with the provisions of the Arbitration and Conciliation Act, 1996 and any subsequent amendments thereto.

¶28

This is a digitally signed order.

¶29

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 15/10/2024 at 11:59:28

¶30

The arbitrator shall be mutually appointed by both parties. The costs of Arbitration will be equally apportioned between HE and the dealer.

¶31

23.3 The applicable law shall be the laws of India.

¶32

24.4 The seat of Arbitration shall be exclusively at New Delhi, and the courts of New Delhi. "

¶33

On 09.07.2024, notice was issued to the respondent.

¶34

As per the service report, the respondent has been served. However, despite the same, there in no appearance on behalf of the respondent.

¶35

For the said reasons, the petition is allowed and the following directions are issued:-

¶36

i) Ms. Bhawna Khanna, Advocate (Mob. No. 9810071710) is appointed as a Sole Arbitrator to adjudicate the disputes between the parties.

¶37

ii) The arbitration will be held under the aegis of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi (hereinafter, referred to as the ‘DIAC’).

¶38

iii) The remuneration of the learned Arbitrator shall be in terms of DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018.

¶39

iv) The learned Arbitrator is requested to furnish a declaration in terms of Section 12 of the Act prior to entering into the reference.

¶40

v) It is made clear that all the rights and contentions of the parties, including as to the arbitrability of any of the claim, any other preliminary objection, as well as claims/counter-claims and

¶41

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 15/10/2024 at 11:59:28

¶42

merits of the dispute of either of the parties, are left open for adjudication by the learned arbitrator. vi) The parties shall approach the learned Arbitrator within two weeks from today.

¶43

JASMEET SINGH, J

¶44

OCTOBER 7, 2024/NG

¶45

This is a digitally signed order.

¶46

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 15/10/2024 at 11:59:28

M/S Annapurna Electric World v. M/S Hero Electric Vehicles Private Limited

Case brief

What is this about?

What did the court decide?

M/S Annapurna Electric World v. M/S Hero Electric Vehicles Private Limited

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

Coram

Case details

Similar cases

Miglani Management Services Private Limited Vs K-Nine Writing Systems Private Limited

Vinay Bareja & Anr. Vs Everlong Brands Pvt. Ltd.

Dimple Gupta Vs Ms Wtc Faridabad Infrastructure Development Pvt. Ltd.

M/S Samsung India Electronics Private Limited Vs Ramesh B. M Proprietor M/S Sri Guru Telecommunications

Radico Khaitan Limited Vs Shiv Kumar

Moneywise Financial Services Pvt. Ltd. Vs English Premium through Its Partners and Ors.