M/S. Ramalingam Construction Company Pvt. Ltd. Vs M/S. Delhi Development Authority — Delhi HC (2025) — LawSathi Research

M/S. Ramalingam Construction Company Pvt. Ltd. Vs M/S. Delhi Development Authority — Delhi HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Appointment of Mr. Bhuvnesh Prakash Khare, Engineer, as Sole Arbitrator to adjudicate the disputes between the parties under the three construction contracts; arbitration to proceed under the aegis of DIAC with fees per the DIAC Schedule of Fees.

Issue for consideration

Whether an arbitrator should be appointed under Section 11(5) of the Arbitration & Conciliation Act to adjudicate disputes between the parties arising under the three construction contracts containing arbitration clauses. +1 more

Court's answer

The Court appointed Mr. Bhuvnesh Prakash Khare, Engineer, as Sole Arbitrator to adjudicate upon the disputes between the parties, consistent with the clause requiring a sole Arbitrator for disputes below Rs.500 crores.

Ratio / Principle

The arbitration shall take place under the aegis of the Delhi International Arbitration Centre (DIAC), abiding by its rules and regulations, with the Arbitrator entitled to fees as per the DIAC Schedule of Fees.

Key takeaways

The learned Arbitrator was requested to file the requisite disclosure under Section 12(2) of the Arbitration & Conciliation Act within a week of entering on reference.ratio¶20
All rights and contentions of the parties in relation to claims/counter-claims were kept open to be decided by the learned Arbitrator on their merits, and nothing in the order was to be construed as an expression of the Court on the merits.obiter¶21

Detailed headnote1 paragraphs

Arbitration & Conciliation Act — Section 11(5) — Appointment of arbitrator — Petitioner and respondent parties to three construction contracts, each containing an arbitration clause — Clause stipulated a three-member arbitral tribunal but mandated a sole Arbitrator where the dispute amount is less than Rs.500 crores — High Court appointed Mr. Bhuvnesh Prakash Khare, Engineer, as Sole Arbitrator — Arbitration directed to be conducted under the aegis of the Delhi International Arbitration Centre (DIAC), abiding by its rules, with fees as per the DIAC Schedule of Fees — Arbitrator to file disclosure under Section 12(2) within a week of entering on reference — All rights and contentions of the parties on claims/counter-claims kept open; order not an expression on the merits — Petition disposed of.

$~4

IN THE HIGH COURT OF DELHI AT NEW DELHI

- ARB.P. 1737/2024

M/S. RAMALINGAM CONSTRUCTION COMPANY PVT. LTD.

.....Petitioner

Through: Mr. Abhinav Raghuvanshi and Mr. Harpal Singh, Advocates.

versus

M/S. DELHI DEVELOPMENT AUTHORITY .....Respondent Through: Mr. Gaganmeet Singh Sachdeva, Mr. Harshpreet Singh Chadha, Advocates. Mr. Pratap Singh Ahluwalia and Mr. Sunil Kamat, Advocates.

CORAM:

HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD

O R D E R

% 13.01.2025

The petitioner has approached this Court under Section 11(5) of the Arbitration & Conciliation Act seeking appointment of arbitrator for adjudication of disputes that has arisen between the parties under the three constructions contracts. It is stated that all the three contracts contain an arbitration clause. The clause calls for a dispute resolution mechanism for the disputes under the contracts to be settled by arbitration.

Though the arbitration clause stipulates that the arbitral tribunal have three arbitrators, however, as per the clause if the dispute amount is less than Rs.500 crores,the dispute has to be decided by a sole Arbitrator.

Learned Counsel for the Respondent proposes that an Engineer be appointed as an Arbitrator. This Court is inclined to appoint Mr. Bhuvnesh Prakash Khare, Engineer, Mob. No.(70423003888) as a Sole Arbitrator to adjudicate upon the disputes between the parties.

The arbitration would take place under the aegis of the Delhi

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 27/01/2025 at 12:35:38

International Arbitration Centre (DIAC) and would abide by its rules and regulations. The learned Arbitrator shall be entitled to fees as per the Schedule of Fees maintained by the DIAC.

The learned Arbitrator is also requested to file the requisite disclosure under Section 12(2) of the Arbitration & Conciliation Act within a week of entering on reference.

All rights and contentions of the parties in relation to the claims/counter-claims are kept open, to be decided by the learned Arbitrator on their merits, in accordance with law.

Needless to say, nothing in this order shall be construed as an expression of this Court on the merits of the contentions of the parties.

The present petition stands disposed of in the above terms along with pending application(s), if any.

SUBRAMONIUM PRASAD, J

JANUARY 13, 2025/j

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 27/01/2025 at 12:35:38