Megalogix Vs St Martins Diocesan School — Arbitration | Delhi HC (2025)

Megalogix Vs St Martins Diocesan School — Arbitration | Delhi HC (2025)

What the court decided

AI extract

Outcome

Termination of the prior arbitrator's mandate and appointment of Mr. Naveen Kumar Chaudhary, Adv. as substitute arbitrator; arbitration under the aegis and rules of DIAC with remuneration per DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018; declaration under Section 12 required before entering reference; all rights, contentions and preliminary objections left open; parties to approach the learned Arbitrator within two weeks.

Issue for consideration

Whether a substitute arbitrator should be appointed in place of the previously appointed arbitrator, who failed to enter reference.

Court's answer

The court is satisfied that sufficient cause has been shown for substitution of the arbitrator, as the arbitrator did not enter reference for a period of more than 2 years.

Ratio / Principle

The mandate of the arbitrator appointed on 28.07.2022 stands terminated and Mr. Naveen Kumar Chaudhary, Adv. is appointed as substitute arbitrator to adjudicate the disputes; the arbitration will be held under the aegis and rules of the Delhi International Arbitration Centre (DIAC).

Detailed headnote1 paragraphs

High Court of Delhi, O.M.P. (T) (COMM.) 26/2025 (Jasmeet Singh, J.; decided 13.05.2025): Petition by MEGALOGIX under Section 15(2) of the Arbitration and Conciliation Act, 1996 seeking appointment of a substitute arbitrator for disputes arising out of the agreement dated 01.01.2019. The arbitrator appointed by the court on 28.07.2022 never entered reference — no notice was issued and no steps taken for over two years. Finding sufficient cause, the court terminated the mandate of the arbitrator appointed on 28.07.2022 and appointed Mr. Naveen Kumar Chaudhary, Adv. as substitute arbitrator. The arbitration is to be held under the aegis and rules of the Delhi International Arbitration Centre (DIAC); remuneration in terms of DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018; the arbitrator is to furnish a declaration in terms of Section 12 of the Act prior to entering the reference. All rights and contentions, including arbitrability and other preliminary objections, claims and counter-claims, are left open for adjudication by the arbitrator. Parties to approach the arbitrator within two weeks. Respondent served but unrepresented; petition disposed of.

$~73

IN THE HIGH COURT OF DELHI AT NEW DELHI

- O.M.P. (T) (COMM.) 26/2025, I.A. 8769/2025

MEGALOGIX .....Petitioner

Through: Mr. Niraj Kumar Singh, Adv.

versus

ST MARTINS DIOCESAN SCHOOL .....Respondent Through:

CORAM: HON'BLE MR. JUSTICE JASMEET SINGH

O R D E R % 13.05.2025

This is a petition filed under Section 15(2) of the Arbitration and Conciliation Act, 1996 seeking appointment of a substitute arbitrator in place of the previously appointed arbitrator.

This court on 28.07.2022 appointed an arbitrator to adjudicate the disputes between the parties arising out of the agreement dated 01.01.2019.

It is stated in the petition that the petitioner tried to contact the arbitrator and the appointed arbitrator sought details of the parties, so notice could be issued.

However, no notice has been issued and the arbitrator also did not take any steps to enter reference.

Hence, the present petition.

Notice was issued on 04.04.2025.

Respondent has been served but there is nobody appearing on behalf of the respondent.

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 01/07/2025 at 16:33:05

I am satisfied that sufficient cause has been shown for substitution of the arbitrator as the arbitrator did not enter reference for a period of more than 2 years.

The mandate of the arbitrator appointed on 28.07.2022 stands terminated and Mr. Naveen Kumar Chaudhary, Adv. (Mob No. 9810372713) is appointed as an arbitrator to adjudicate the disputes between the parties. 10. The arbitration will be held under the aegis and rules of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi (hereinafter, referred to as the ‘DIAC’).

The remuneration of the learned Arbitrator shall be in terms of DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018. 12. The learned Arbitrator is requested to furnish a declaration in terms of Section 12 of the Act prior to entering into the reference. 13. 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 merits of the dispute of either of the parties, are left open for adjudication by the learned arbitrator.

The parties shall approach the learned Arbitrator within two weeks from today.

The petition is disposed of.

JASMEET SINGH, J

MAY 13, 2025/DM

Click here to check corrigendum, if any

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 01/07/2025 at 16:33:05