Indian Potash Limited Vs M/S Raysons Global Group Pte Ltd. & Ors. — Arbitration | Delhi HC (2025)

Indian Potash Limited Vs M/S Raysons Global Group Pte Ltd. & Ors. — Arbitration | Delhi HC (2025)

What the court decided

AI extract

Outcome

Petition disposed of; relief sought relegated to the Arbitrator as a Section 17 A&C Act application; petitioner free to raise the issues before the Arbitral Tribunal; Tribunal at liberty to modify/vary the Court's 05.01.2024 preservation directions; matter referred by consent to DIAC with Justice Sunil Ambwani (Retd.) appointed Sole Arbitrator under the DIAC Rules, fee per Fourth Schedule of the A&C Act; parties listed before DIAC on 5 February 2025.

Issue for consideration

Whether the relief sought by the petitioner in this petition should continue to be dealt with by the High Court, or be relegated to the Arbitrator and treated as an application under Section 17 of the Arbitration and Conciliation Act, 1996.

Court's answer

With the agreement of petitioner's counsel and the suggestion of counsel for respondents, the relief sought in the petition is relegated to the Arbitrator and treated as an application under Section 17 of the Arbitration and Conciliation Act, 1996.

Ratio / Principle

The petitioner will be at liberty to raise these issues under Section 17 of the A&C Act before the Arbitral Tribunal.

Key takeaways

The Arbitral Tribunal shall be at liberty to modify or vary the directions passed by this Court (the order dated 05.01.2024 requiring retention and preservation of the original bank guarantee dated 28.08.2023 and supporting documents) after hearing the parties.ratio¶18
By consent of the parties, the matter is referred to the Delhi International Arbitration Centre (DIAC).ratio¶19
Justice Sunil Ambwani (Retd.), Former Chief Justice of Rajasthan High Court, is appointed Sole Arbitrator; the arbitration shall proceed under the aegis of and in accordance with the Rules of the DIAC, with the Sole Arbitrator's fee as per the Fourth Schedule of the A&C Act as amended by the DIAC Rules.

Detailed headnote1 paragraphs

Arbitration and Conciliation Act, 1996 - Section 17 - Interim relief sought before the High Court in an O.M.P.(I)(COMM.) petition - On the agreement of petitioner's counsel and suggestion of respondents' counsel, the relief sought was relegated to the Arbitrator and treated as an application under Section 17 A&C Act, petitioner remaining free to raise the issues before the Arbitral Tribunal - The Tribunal was empowered to modify/vary the Court's earlier order (dated 05.01.2024) directing respondent No. 3 to retain and preserve the original bank guarantee dated 28.08.2023 with supporting documents and communications during the pendency of proceedings - By consent, matter referred to DIAC; Justice Sunil Ambwani (Retd.), Former Chief Justice of Rajasthan High Court, appointed Sole Arbitrator under the DIAC Rules, fee per Fourth Schedule of the A&C Act as amended by DIAC Rules; parties to appear before DIAC on 05.02.2025 - Petition disposed of.

$~61

IN THE HIGH COURT OF DELHI AT NEW DELHI

- O.M.P.(I) (COMM.) 4/2024

INDIAN POTASH LIMITED .....Petitioner

Through: Mr. Sanjay Rawat, Adv.

versus

M/S RAYSONS GLOBAL GROUP PTE LTD.

& ORS. .....Respondents Through: Mr. Vijay Kasana, Mr.Vishal Chowdhary and Mr. Chirag Verma, Advs. for R-1.

CORAM: HON'BLE MR. JUSTICE ANISH DAYAL

O R D E R

% 20.01.2025

Mr. Sanjay Rawat, Advocate, appearing for petitioner, pursuant to order dated 16^th August 2024, agrees to the suggestion of counsel for respondents, that the relief sought in this petition is relegated to the Arbitrator and treated as an application under Section 17 of the Arbitration and Conciliation Act, 1996 (‘ A&C Act ’).

The petitioner will be at liberty to raise these issues under Section 17 of the A&C Act, before the Arbitral Tribunal.

Order dated 05^th January 2024 was passed by this Court in the following terms:

“On a prima-facie appreciation of the matter, and in view of what has been submitted, respondent No. 3 is directed to retain and preserve the original bank guarantee dated 28.08.2023 issued in. the matter alongwith all supporting documents, including all communications exchanged between the parties in relation thereto, during the

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 30/01/2025 at 12:44:07

pendency of the present proceedings.”

The Arbitral Tribunal shall be at liberty to modify/vary the said directions passed by this Court after hearing the parties.

By consent of the parties, the matter is referred to the Delhi International Arbitration Centre (DIAC).

Justice Sunil Ambwani (Retd.), Former Chief Justice of Rajasthan High Court , (Mobile No. 8882331880) is appointed as the Sole Arbitrator. The Arbitration proceedings shall take place under the aegis of the Delhi International Arbitration Centre (‘ DIAC ’). The arbitration proceedings shall be conducted under the Rules of the DIAC. The fee of the Sole Arbitrator shall be as per the Fourth Schedule of the A&C Act, as amended by the DIAC Rules.

List before the DIAC on 5^th February 2025. Parties to appear before the DIAC. Let a copy of the present order be emailed to Secretary, DIAC on the email [email protected] .

Copy of this order be communicated by the Registry to the counsel for parties through email.

Petition is disposed of. Pending applications, if any, are also disposed of as being rendered infructuous.

Order be uploaded on the website of this Court.

ANISH DAYAL, J

JANUARY 20, 2025/MK/na

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 30/01/2025 at 12:44:07