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The disputes between the parties still survive and thus parties are liable to be referred to arbitration: High Court Of Delhi

The Arbitrator shall furnish the requisite disclosure under section 12 of the Arbitration and Conciliation Act, 1996 within two weeks of entering reference was upheld by the High Court Of Delhi through the learned bench led by HON’BLE MR. JUSTICE SANJEEV SACHDEVA in the case of JAGJEET SINGH Vs UNION OF INDIA (ARB.P. 64/2022) on 09th May, 2022.

Brief facts of the case are that petitioner seek reference of disputes to an Arbitral Tribunal to be constituted in accordance with Clause 25 of the General Conditions of Contract between the parties.

Learned counsel for the respondent submitted that the final bills submitted by the petitioner have been verified and approved for payment. She submits that in one case payment of Rs. 37,33,565/- has already been disbursed and balance payment of Rs. 79,09,179/- in the remaining three contracts has been cleared and shall be paid subject to availability of funds. Despite the said payment, the disputes still survive as some of the claims have been rejected and some claims have been cleared for lesser amount and even the approved payments have not been released. Besides this there is also a claim for interest on delayed payments.

Learned Counsel for the parties submitted that though the work orders are different, common questions would arise for consideration in all the cases.

The Court observed “the disputes between the parties still survive and thus parties are liable to be referred to arbitration. Since, it is contended that common issues may arise for consideration in all the petitions, I am of the view that interest of justice requires that the disputes be referred to one Arbitrator. Without prejudice to their rights and contentions of the parties, Mr. Baljeet Singh Dhir, Advocate, Delhi High Court is appointed as the Sole Arbitrator in all the petitions to adjudicate the claims and counter claims, if any, of the parties. The fees of the learned Arbitrator shall be as per the Fourth Schedule of the Arbitration and Conciliation Act, 1996.”

In view of facts and circumstances, court held that the Arbitrator shall furnish the requisite disclosure under section 12 of the Arbitration and Conciliation Act, 1996 within two weeks of entering reference.

Click here to read the Judgement

Written by- Riya Singh, Legal Intern, Prime Legal

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