M/S SHAF BROADCAST PVT LTD vs. DOORDARSHAN A CONSTITUENT OF PRASAR BHARTI

1 NON­REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL ORIGINAL JURISDICTION ARBITRATION PETITION No. 36 OF 2019 M/S. SHAF BROADCAST PVT. LTD.       PETITIONER VERSUS DOORDARSHAN – A CONSTITUENT OF PRASAR BHARTI & ANR.     RESPONDENTS O R D E R  INDU MALHOTRA, J. 1. The Petitioner has filed an Application under Section 11  of the  Arbitration  & Conciliation  Act,   1996  for appointment of an Arbitrator on behalf of Respondent No. 1 – Doordarshan, in an international commercial Digitally signed by arbitration. MUKESH KUMAR Date: 2019.11.07 12:47:57 IST Reason: Signature Not Verified 2 2. The   Petitioner   –   Company   and   Respondent   No.   2 entered   into   a   Contract   dated   08.03.2010   with Respondent   No.   1   –   Doordarshan.   The   Contract contains an arbitration clause, which reads as under : “8.2   Arbitration:   In   the   case   of dispute arising upon or in relation to or   in   connection   with   the   Contract between HB and the Entity, which has not been settled amicably, any Party can refer the dispute for Arbitration under   (Indian)   Arbitration   and Conciliation Act, 1996. Such disputes shall   be   referred   to   an   Arbitral Tribunal   consisting   on   3   (three) arbitrators, one each to be appointed by   HB   and   the   Entity,   the   third arbitrator shall be chosen by the two arbitrators   so   appointed   by   the Parties which shall act as Presiding Arbitrator.   In   case   of   failure   of   the two   arbitrators,   appointed   by   the Parties   to   reach   a   consensus regarding   the   appointment   of   the third   arbitrator   within   a   period   of Thirty   (3)   days   from   the   date   of 3 appointment   of   the   two   arbitrators, the   Presiding   Arbitrator   shall   be appointed   by   the   Secretary   of   the Ministry   of   Information   and Broadcasting,   Government   of   India. The Arbitration and Conciliation Act, 1996 and any statutory modification or re­enactment thereof shall apply to these Arbitration proceedings. 8.3   Arbitration   proceedings   shall   be held  in  India  at  New  Delhi  and  the language   of   the   Arbitration proceedings   and   that   of   all documents   and   communications between the Parties shall be English. The law as applicable in India shall govern the rights and obligations of the parties.” 3. Disputes arose between the parties, which led to the invocation of the arbitration clause on 14.01.2019 by the Petitioner – Company. The Petitioner – Company nominated its arbitrator on 28.02.2019 in terms of the   agreement.   However,   Respondent   No.   1   – Doordarshan   failed   to   nominate   an   arbitrator. 4 Consequently, the Petitioner – Company has filed the present   Application   under   Section   11   of   the Arbitration   &   Conciliation   Act,   1996   seeking appointment of an Arbitrator by the Court on behalf of Respondent No. 1 – Doordarshan. 4. Even though the arbitration agreement provides for a three­member   arbitral   tribunal,   the   Counsel   for   all the parties at the time of hearing, requested for the appointment of a Sole Arbitrator in modification of the   arbitration   clause   stipulating   a   three­member tribunal, to adjudicate the disputes. 5. Accordingly, with the consent of the Counsel for the parties, we appoint Mr. Justice (Retd.) A. M. Sapre, Former Judge, Supreme Court of India as the Sole Arbitrator   subject   to   the   declarations   being   made under Section 12 of the Arbitration and Conciliation Act,   1996   with   respect   to   independence   and impartiality, and the ability to devote sufficient time to complete the arbitration within the period of 12 months.   The   learned   Arbitrator   is   requested   to complete   the   proceedings   within   the   time­limit specified under Section 29A. 5 6. The   arbitration   clause   specifies   that   the   Seat   of arbitration will be at New Delhi, India. We direct the arbitration be conducted at New Delhi as the Seat of arbitration. 7. The Arbitrator will be paid fees in accordance with the   Fourth   Schedule   of   the   Arbitration   and Conciliation Act, 1996 as amended. 8. A copy of this Order be despatched to Mr. Justice (Retd.) A. M. Sapre, Former Judge, Supreme Court of India at the following address: “Mr.   Justice   (Retd.)   A.   M. Sapre, Former Judge, Supreme Court of India, C­203, Second Floor Sarvodaya Enclave New Delhi – 110017 Tel No.: 011­40254823 Mob. No.: 7042955488” The   parties   are   directed   to   appear   before   the   learned Arbitrator on 15.11.2019 at 11 a.m. The matter is disposed of accordingly. 6 …..……...........................J. (UDAY UMESH LALIT) ..….……..........................J. (INDU MALHOTRA) …..……...........................J. (SANJIV KHANNA) New Delhi; November 7, 2019.