Full Judgment Text
$~7
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P. (T) (COMM.) 29/2021
NAVIN KUMAR GUPTA ..... Petitioner
Through: Ms. Rajasree Ajay, Adv.
versus
NEW DELHI MUNICIPAL COUNCIL ..... Respondent
Through: Mr. Anil Grover, Adv.
CORAM:
HON'BLE MR. JUSTICE C .HARI SHANKAR
O R D E R (ORAL)
% 08.09.2021
(Video-Conferencing)
C .HARI SHANKAR, J.
O.M.P. (T) (COMM.) 29/2021
1.
This petition essentially challenges the unilateral appointment
rd
of the arbitrator by the respondent vide a communication dated 23
January, 2020. By the said communication, the respondent NDMC
appointed a retired IAS Officer to arbitrate on the disputes between
the petitioner and the respondent.
2. The appointment of the arbitrator by NDMC is in line with
Clause 25 of the Agreement between the parties, which envisages
arbitration by an arbitrator to be appointed by the Chairperson,
NDMC. However, in the wake of decisions of the Supreme Court in
1
, Perkins
Bharat Broadband Network Ltd v. United Telecoms Ltd
1
(2019) 5 SCC 755
Signature Not Verified
O.M.P. (T) (COMM.) 29/2021 Page 1 of 3
Digitally Signed
By:SUNIL SINGH NEGI
Signing Date:13.09.2021
16:18:30
2
Eastman Architects DPC v. HSCC (India) Ltd and TRF Limited v
3
Energo Engineering Project Limited , the right to appoint the
arbitrator cannot be unilaterally conferred on any one party to the
Agreement.
3. As such, the appointment of the arbitrator vide the aforesaid
rd
letter dated 23
January, 2020 cannot sustain in law. It has
necessarily to be set aside.
4. Learned Counsel for the parties are agreeable to the matter
being referred to t he Delhi International Arbitration Centre (DIAC) to
appoint an appropriate arbitrator to arbitrate on the disputes.
Accordingly, this petition is disposed of by referring the
5.
disputes between the parties to the DIAC. The DIAC would appoint a
suitable arbitrator to arbitrate on the disputes.
6. Ms. Rajasree Ajay, learned Counsel for the petitioner, submits
that as the dispute is technical in nature, it would be appropriate if the
arbitrator is well conversant with engineering practice. The DIAC
would keep this fact in mind while appointing the arbitrator.
7. The arbitration would take place under the aegis of DIAC and
would abide by the rules and regulations of DIAC.
2
(2020) 20 SCC 760
3
(2017) 8 SCC 377
Signature Not Verified
O.M.P. (T) (COMM.) 29/2021 Page 2 of 3
Digitally Signed
By:SUNIL SINGH NEGI
Signing Date:13.09.2021
16:18:30
8. The arbitrator would also be entitled to fees in accordance with
the schedule of fees maintained by the DIAC.
9. The petition stands disposed of in the above terms.
C. HARI SHANKAR, J.
SEPTEMBER 8, 2021
r.bararia
Signature Not Verified
O.M.P. (T) (COMM.) 29/2021 Page 3 of 3
Digitally Signed
By:SUNIL SINGH NEGI
Signing Date:13.09.2021
16:18:30