Full Judgment Text
NEUTRAL CITATION NO. 2023/DHC/001845
* IN THE HIGH COURT OF DELHI AT NEW DELHI
th
% Date of order : 13 March, 2023
+ ARB.P. 1139/2022
THE PROFESSIONAL HAIR SALON AND SPA INDIA PVT
LTD. ..... Petitioner
Through: Mr.A.P.S. Jadaun, Advocate
versus
KS ENTERPRISES AND ORS. .....Respondents
Through: Ms.Kashish Sareen, Advocate
CORAM:
HON'BLE MR. JUSTICE CHANDRA DHARI SINGH
O R D E R
CHANDRA DHARI SINGH, J (Oral)
1. The present petition has been filed on behalf of the petitioner under
Section 11 of the Arbitration and Conciliation Act, 1996 seeking
appointment of Sole Arbitrator for adjudication of disputes arising
between the parties arising with respect to the Franchisee Agreement
st
dated 31 May, 2019.
2. Learned counsel appearing on behalf of the petitioner submitted
that petitioner is a company incorporated under the Companies Act, 1956
engaged in the business of health, wellness and lifestyle operating a salon
and spa services throughout the territory of India under the brand name
"Monsoon".
3. It has been submitted on behalf of the petitioner that respondent No. 1
is a sole proprietorship which had taken the Monsoon salon under a
ARB.P. 1139/2022 Page 1 of 4
Signature Not Verified
Digitally Signed
By:DAMINI YADAV
Signing Date:14.03.2023
18:24:25
NEUTRAL CITATION NO. 2023/DHC/001845
Franchisee Agreement from the Petitioner. It is further submitted that
respondent No.2 and 3 are the representatives of the respondent No. 1 sole
proprietorship.
4. It has been submitted on behalf of the petitioner that the respondent
approached the petitioner with an intention to open a franchise and the
petitioner agreed to the offer made by the respondent, that were
st
subsequently reduced to writing vide Franchisee Agreement dated 31 May,
2019.
5. It has been submitted on behalf of the petitioner that the petitioner has
had problems with the respondents' franchise from the outset and has often
alerted them of these problems. The petitioner's major problem was that
royalties were not paid on schedule. It is further submitted that the
respondents were obligated to pay monthly royalties to the tune of INR
50,000/-. Unfortunately, the respondent began regularly failing to meet its
duties under the Franchise Agreement by failing to pay royalties on time.
6. It is submitted on behalf of the petitioner that despite providing the
respondents with numerous opportunities to rectify, the petitioner ultimately
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was forced to terminate the Agreement on 22 December, 2021, via a letter
noting that further business interactions could not be supported or prolonged
owing to the non-payment of royalties.
7. It is further submitted that in light of the aforementioned letter, the
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petitioner further issued the respondent with a legal notice dated 10
February, 2022, requesting the payment of overdue royalties.
8. It is submitted on behalf of the petitioner that the respondent
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Digitally Signed
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Signing Date:14.03.2023
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NEUTRAL CITATION NO. 2023/DHC/001845
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responded to the Legal Notice dated 10 February, 2022, purposefully
seeking to place the responsibility on the petitioner, by using a fabricated
factual matrix to excuse themselves from paying the petitioner's
legitimately due sums.
9. Learned counsel appearing on behalf of the petitioner submitted
that being aggrieved by the actions of the respondent, the petitioner was
constrained to invoke the arbitration clause as provided in the Franchisee
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Agreement vide Legal Notice dated 10 March, 2022.
10. Learned counsel appearing on behalf of the respondent vehemently
opposed the averments made in the instant petition however has fairly
conceded to the arbitral nature of disputes between the parties and has no
objection if an independent arbitrator is appointed by this Court for
redressal of disputes.
11. Heard the learned counsel for the parties and perused the record.
12. As agreed on behalf of the parties, this Court finds it appropriate to
appoint a Sole Arbitrator to adjudicate the disputes between the parties
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arising out of the Franchisee Agreement dated 31 May, 2019. Hence, the
following order:
ORDER
(i) Ms. Neelakshi Bhadauria, Advocate is appointed as a sole
arbitrator to adjudicate the disputes between the parties
which have arisen under the Franchisee Agreement dated
st
31 May, 2019;
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Signature Not Verified
Digitally Signed
By:DAMINI YADAV
Signing Date:14.03.2023
18:24:25
NEUTRAL CITATION NO. 2023/DHC/001845
(ii) The learned sole arbitrator, before entering the arbitration
reference, shall ensure the compliance of Section 12(1) of
the Arbitration and Conciliation Act, 1996;
(iii) The learned sole arbitrator shall be paid fees as prescribed
under The Delhi International Arbitration Centre (DIAC)
(Administrative Cost and Arbitrators Fees) Rules, 2018 as
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amended vide notification dated 15 November, 2022;
(iv) At the first instance, the parties shall appear before the
learned sole arbitrator within 10 days from today on a date
which may be mutually fixed by the learned sole arbitrator;
(v) All contentions of the parties are expressly kept open.
13. A copy of the order be forwarded to the learned sole arbitrator on
the following address:
Ms. Neelakshi Bhadauria, Advocate
A/152, IV Floor, Defence Colony
New Delhi - 110024
Mobile No.: +91-8053461050
E-mail ID: neelakshi.bhadauria1@gmail.com
14. Accordingly, the instant petition is disposed of alongwith pending
applications, if any.
15. The order be uploaded on the website forthwith.
CHANDRA DHARI SINGH, J
MARCH 13, 2023
SV/UG
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Signature Not Verified
Digitally Signed
By:DAMINI YADAV
Signing Date:14.03.2023
18:24:25