On 6th March, 2023, the bench of Justice Chandra Dhari Singh passed an order when questions were raised by Arvind Techno Globe (petitioner) over the independence of names proposed by DMRCL for appointment as arbitrator.
Justice N.V. Ramana, Former Chief Justice of India is appointed as a sole arbitrator to adjudicate the disputes between the parties which have arisen under the Contract Agreement dated 22nd July, 2013," said Court.
Further, the Court held that that the arbitrator's fees shall be paid as laid down in the Delhi International Arbitration Centre (DIAC) (Administrative Cost and Arbitrators Fees) Rules, 2018.
Case Brief –
In the said matter, there is a long run disputes between the parties over the payment owed by DMRCL to Arvind Techno Globe for work carried pursuant to a 2013 contract between the two.
The project awarded by DMRCL to the petitioner is stated to have been completed in 2018, after a 27-month delay that the latter attributed to DMRCL's actions. After the completion of work, the petitioner raised a claim of 20,64,14,428 under several heads. DMRCL, however, is stated to have denied this claim.
Further, the petitioner contended that DMRCL had refused to appoint an independent arbitral tribunal of arbitrators.
Therefore, petitioner filed a plea before the High Court under Section 11 of the Arbitration and Conciliation Act, 1996.
Petitioner submitted that DMRCL had suggested five names in violation of the Supreme Court's judgment in Voestalpine Schienen GmbH vs. Delhi Metro Rail Corporation Ltd. DMRCL asserted that none of these nominees were affiliated to DMRCL, which is a Joint Venture between the government of India and the government of Delhi.
After a whole argument, the Court decided to refer the matter to a sole arbitrator appointed by it after taking note that there was no dispute over whether the dispute was arbitral in nature.
"As agreed on behalf of the parties, this Court finds it appropriate to refer the disagreements arising between the parties with respect to the Contract Agreement dated 22nd July, 2013 to an independent sole arbitrator for its redressal," the Court said.
Hence, The Court further disposed the plea.
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