Disposed

Matsya Fincap Pvt. Ltd. v. Rehmatullah and Anr.

Delhi HC5 Sept 2024EFA(COMM)/6/2024

Case brief

AI extract

What is this about?

This order dismissed appeals against execution orders refusing to enforce an award due to alleged unilateral arbitrator appointment. The Court, after parties agreed, appointed Ms. Beenashaw Nanda as Sole Arbitrator for de novo arbitration.

What did the court decide?

Appointment of Ms. Beenashaw Nanda as Sole Arbitrator for de novo arbitration; seat Delhi; appellant bears fees; parties to approach within 2 weeks.

Matsya Fincap Pvt. Ltd. Vs Rehmatullah and Anr. — Arbitration | Delhi HC (2024)

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$~3 & 5

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* IN THE HIGH COURT OF DELHI AT NEW DELHI

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% Date of decision: 05.09.2024

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+ EFA(COMM) 6/2024

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MATSYA FINCAP PVT LTD .....Appellant Through: Ms Shivani Garg, Advocate with Mr Bhupendra Kr Gupta, AR.

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versus

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REHMATULLAH AND ANR .....Respondents Through: Mr Arun Kumar Yadav, Advocate for respondent No. 1 with respondent No. 1 in person.

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+ EFA(COMM) 9/2024

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MATSYA FINCAP PVT LTD .....Appellant Through: Ms Shivani Garg, Advocate with Mr Bhupendra Kr Gupta, AR.

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versus

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REHMATULLAH AND ANR .....Respondents Through: Mr Arun Kumar Yadav, Advocate for respondent No. 1 with respondent No. 1 in person.

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CORAM:

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HON'BLE MR. JUSTICE RAJIV SHAKDHER HON'BLE MR. JUSTICE AMIT BANSAL

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[Physical Hearing/Hybrid Hearing (as per request)]

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AMIT BANSAL, J. (ORAL)

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The above-captioned appeals are preferred against the impugned

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Signature Not Verified

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Digitally Signed By:DINESH KUMAR Signing Date :09. 09.2024 18:13:17 EFA(COMM) 6/2024 and EFA(COMM) 9/2024

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Page 1 of 3

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judgments and orders of even date, i.e., 2^nd April 2024 rendered in Execution (COMM) No. 65/2021 and Execution (COMM) No. 66/2021 by the learned District Judge-Commercial Court-05 (Central), Tis Hazari, Delhi (hereinafter referred to as ‘Execution Court’).

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Via the impugned judgments, the Execution Court has, in effect, refused to enforce the Award as it concluded that the Award was a “nullity”. A perusal of the impugned order would show that the Execution Court has reached this conclusion as it accepted the submission advanced on behalf of the respondent that the appointment of the arbitrator was unilateral. Accordingly, the objections filed on behalf of the respondents were allowed and the execution petitions were dismissed.

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Notice was issued by this Court in EFA(COMM) 6/2024 on 22^nd July 2024 and in EFA(COMM) 9/2024 on 5^th August 2024. 4. Authorised Representative (hereinafter referred to as “ AR ”) of the appellant submits that without prejudice to the rights and contentions of the appellant, the appellant would be satisfied with initiation of de novo arbitration between the parties and a Sole Arbitrator being appointed by this court.

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Counsel appearing on behalf of the respondents submits that they would have no objection if de novo arbitration is initiated by an Arbitrator appointed by this Court.

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5.1. In view of the agreement arrived at by the parties, as indicated above, Ms. Beenashaw Nanda (Ph. No. 9810046611) is appointed as the Sole Arbitrator to adjudicate the disputes between the parties. The following directions are passed in this regard:

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i. The seat of arbitration will be Delhi.

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Signature Not Verified

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Digitally Signed By:DINESH KUMAR Signing Date :09. 09.2024 18:13:17 EFA(COMM) 6/2024 and EFA(COMM) 9/2024

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Page 2 of 3

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ii. The Arbitrator shall be paid a cumulative fee of Rs. 1,00,000/- in respect of both the cases. The burden of fees of the arbitrator shall be borne by the appellant.

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iii. The Arbitrator is requested to furnish a declaration in terms of Section 12 of the Arbitration and Conciliation Act, 1996 prior to entering upon reference.

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iv. The parties shall approach the Arbitrator within two (2) weeks from today.

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The parties are at liberty to raise all their contentions before the Arbitrator.

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Accordingly, the appeals are disposed of in the aforesaid terms.

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AMIT BANSAL (JUDGE)

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RAJIV SHAKDHER (JUDGE)

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SEPTEMBER 05, 2024 kd

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Signature Not Verified Digitally Signed By:DINESH KUMAR Signing Date :09. 09.2024 18:13:17 EFA(COMM) 6/2024 and EFA(COMM) 9/2024

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Page 3 of 3

Matsya Fincap Pvt. Ltd. v. Rehmatullah and Anr.

Case brief

What is this about?

What did the court decide?

Matsya Fincap Pvt. Ltd. v. Rehmatullah 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

Coram

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