Allowed

Leaseplan India Private Limited v. Ecogreen Envirotech Solutions Limited

Delhi HC17 Sept 2024O.M.P.(MISC.)(COMM.)/493/2024

Case brief

AI extract

What is this about?

The Delhi High Court entertained a petition to extend the mandate of an arbitrator whose term had expired on 31 August 2023. The Court held that the arbitrator's communication only noted the expiry and did not constitute a withdrawal, empowering the Court to grant a nine-month extension under Section 29A(4).

What did the court decide?

The mandate of the learned arbitrator was extended by a period of nine months from today, deemed to continue since 31 August 2023.

Leaseplan India Private Limited Vs Ecogreen Envirotech Solutions… — Arbitration | Delhi HC (2024)

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$~46

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* IN THE HIGH COURT OF DELHI AT NEW DELHI

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O.M.P. (MISC.) (COMM.) 493/2024 LEASEPLAN INDIA PRIVATE LIMITED .....Petitioner Through: Ms. Divya Singh and Ms. Laika Khandelwal, Advs.

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versus

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ECOGREEN ENVIROTECH SOLUTIONS LIMITED

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.....Respondent Through: Mr. Kushank Garg, Ms. Shrishti Jeswani, and Mr. Nikhil Kohli, Advs.

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CORAM: HON'BLE MR. JUSTICE C. HARI SHANKAR

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ORDER (ORAL) 17.09.2024

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1. Arbitral proceedings between the parties were ongoing before the learned retired Chief Justice of the High Court of Jammu & Kashmir.

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2. The mandate of the learned arbitrator expired on 31 August 2023.

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3. Prior thereto, on 25 August 2023, the following order was passed by the learned arbitrator:

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“Order Date: 25.08.2023

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Venue: Online hearing through video conferencing with all participants at their respective locations.

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Present: For the Respondent: Mr. Kushank Garg, Advocate

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For the Claimant: Ms. Divya Singh along with Ms. Pooja Sharma, Advocates

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Signature Not Verified

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Signature Not Verified

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Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date: 19.0 9.2024 18:06:36

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Digitally Signed By:AJITOMP (Misc) (Comm) 493/2024 KUMAR Signing Da te:1 9.09.2024 18:07:26

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Page 1 of 5

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ORDER No.43

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The matter is fixed for further cross-examination of the RW1 Mr. Ajay Singh, who is present today.

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However, a statement is jointly made by Mr. Kushank Garg, Ld. Counsel for the Claimant and Ms. Divya Singh, Ld. Counsel for the Respondent that since the last date of hearing, the parties are negotiating the possibility of an amicable resolution of disputes. A joint request is made for adjournment today by a period of four weeks for this purpose.

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As recorded in the order dated 26.07.2023, the period for making the Award, as extended in terms of Section 29A (3) of the Arbitration and Conciliation Act, 1996, comes to an end on 31.08.2023. In view of the above circumstances, Ld. Counsels for the parties submit that they shall make a joint application before the High Court for extension of the mandate of this Tribunal in accordance with law. Let the same be so done.

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On the request of the parties, the matter is fixed on 05.10.2023 at 17:30 hrs.”

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4. The learned counsels have joined issue on the making of the joint application for extension of the mandate of the learned arbitrator, as directed in para 3 of the order dated 25 August 2023 supra . They are, however, ad idem that till February 2024, attempts at an amicable resolution of the disputes were in progress.

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5. Ms. Divya Singh, learned Counsel for the petitioner, submits that, in February 2024, when the attempt at settlement proved abortive, she sent a draft of the joint application for extension of the mandate of the learned arbitrator to learned counsel for the respondent for approval and signature. After awaiting a response, which was not forthcoming, she submits that she has moved the present petition before this Court, in April 2024, seeking extension of the mandate of the learned arbitrator.

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Signature Not Verified

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Signature Not Verified

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Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date: 19.0 9.2024 18:06:36

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Digitally Signed By:AJITOMP (Misc) (Comm) 493/2024 KUMAR Signing Da te:1 9.09.2024 18:07:26

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Page 2 of 5

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6. Mr. Garg, learned Counsel for respondent, has drawn my attention to a communication dated 23 August 2024, addressed by the learned arbitrator to learned counsel for both sides. The communication reads thus:

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“From: Gita Mittal [email protected] Date: Fri, 23 Aug, 2024, 6:54 pm

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Subject: Re: Subject: In the matter of arbitration between Leaseplan India Pvt. Ltd. and Ecogreen Envirotech Services Ltd.

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To: Paritosh Budhiraja [email protected], sharmapooja2894 [email protected] Cc: nikhil [email protected], kushankgarg [email protected], Chandrika Sharma [email protected]

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Dear all,

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Please see attached herewith letter dated 23.04.2024 in the captioned arbitration matter for your reference and record.

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Regards,

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O/o Justice Gita Mittal (Retd)

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7. Mr. Garg sought to submit that the present petition was no longer maintainable as no order can be passed in the present petition extending the mandate of the learned arbitrator as the learned arbitrator herself terminated her mandate as communicated by order dated 23 August 2024.

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8. This submission is, in my view, incorrect. The communication dated 23 August 2024 from the learned arbitrator merely records the fact that, by efflux of time, the mandate of the learned arbitrator expired on 31 August 2023. The order passed by the learned arbitrator on 25 August 2023, extracted supra , indicates that both sides had

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Signature Not Verified

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Signature Not Verified

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Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date: 19.0 9.2024 18:06:36

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Digitally Signed By:AJITOMP (Misc) (Comm) 493/2024 KUMAR Signing Da te:1 9.09.2024 18:07:26

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Page 3 of 5

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agreed to file a joint application for extension of the mandate of the learned arbitrator.

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9. Learned counsel are ad idem that, till February 2024, attempts were ongoing to amicably resolve the dispute. Thereafter, with reasonable expedition, the present petition has been filed by the petitioner for extension of the mandate of the learned arbitrator.

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10. The mandate of the learned arbitrator can expire only once and not repeatedly.

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11. The learned arbitrator has merely noted, in her communication dated 23 August 2024, the fact that her mandate stood terminated on 31 August 2023. No more can be read into this letter. It is not as though the learned arbitrator once again terminated her mandate on 23 August 2024.

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12. As noted by the learned arbitrator, the mandate of the learned arbitrator terminated on 31 August 2023 under Section 29 A (4) of the 1996 Act. The same provision empowers the Court to extend the mandate of the learned arbitrator either prior to or after expiry of the mandate.

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13. As such, this Court is empowered to extend the mandate of the learned arbitrator even now.

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14. The learned arbitrator has not withdrawn from proceedings or expressed any disinclination to continue with the proceedings. Though

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Signature Not Verified

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Signature Not Verified

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Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date: 19.0 9.2024 18:06:36

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Digitally Signed By:AJITOMP (Misc) (Comm) 493/2024 KUMAR Signing Da te:1 9.09.2024 18:07:26

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Page 4 of 5

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the learned arbitrator has noted, that the parties were not responding despite emails having been issued by her on 15 December 2023, 2 January 2024 and 20 January 2024, learned counsel are ad idem that, during this period, they were attempting to amicably resolve the dispute.

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15. In that view of the matter, it cannot be said that the parties are disinterested in proceeding with the arbitration.

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16. Keeping in mind all these facts and in order to ensure that the dispute is taken to its logical end, I am inclined to extend the mandate of the learned arbitrator by a period of nine months from today.

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17. The mandate of the learned arbitrator shall be treated as continuing since 31 August 2023, when it had expired by efflux of time.

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18. The petition stands allowed in the aforesaid terms.

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C. HARI SHANKAR, J.

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SEPTEMBER 17, 2024 dsn

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Click here to check corrigendum, if any

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Signature Not Verified

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Signature Not Verified

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Page 5 of 5 Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date: 19.0 9.2024 18:06:36

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Digitally Signed By:AJITOMP (Misc) (Comm) 493/2024 KUMAR Signing Da te:1 9.09.2024 18:07:26

Leaseplan India Private Limited v. Ecogreen Envirotech Solutions Limited

Case brief

What is this about?

What did the court decide?

Leaseplan India Private Limited v. Ecogreen Envirotech Solutions 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

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