Former CJI Justice N.V. Ramana Appointed As Arbitrator In Dispute Between DMRC And Arvind Techno Globe

The bench of Justice Chandra Dhari Singh was dealing with a petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 (A&C Act) by the petitioner, Arvind Techno Globe, seeking appointment of an independent sole arbitrator. The petitioner argued that the DMRC, by asking the petitioner to choose an arbitrator from a panel of 5 names outlined by it, failed to appoint an independent arbitral tribunal in accordance with Section 12(5) of the A&C Act.

Noting that the dispute before it was limited to the extent of appointment of an independent arbitrator, the Court appointed Justice N.V. Ramana as the Sole Arbitrator and referred the parties to arbitration.

The petitioner, Arvind Techno Globe, was awarded a construction contract by DMRC, which is a Joint Venture between the Governments of India and Delhi. Alleging that DMRC failed to clear its dues under the Contract Agreement executed between them, the petitioner invoked the arbitration clause and filed a petition under Section 11 of the A&C Act before the Delhi High Court.

Arvind Techno Globe contended before the High Court that since the efforts to resolve the dispute amicably between the parties had failed, it was constrained to invoke the arbitration clause provided under the General Condition of Contract (GCC).

It further submitted that DMRC asked the petitioner to choose an arbitrator from a panel of 5 names forwarded by it. It pleaded that DMRC, thus, refused to appoint an independent arbitral tribunal in accordance with Section 12(5) of the A&C Act, despite acknowledging that disputes had developed between the parties as a result of non-payment of its claims.

To this, DMRC argued before the Court that none of the panel's arbitrators were affiliated with DMRC or related to the subject matter of dispute. It averred that the panel's arbitrators were either National High-Speed Rail Corporation Limited (NHSRCL) or the Indian Railway Service of Engineers (IRSE). It thus contended that the panel of arbitrators chosen by it, in accordance with the arbitration clause contained in the GCC, did not fall under the definition of an ineligible person under Section 12(5) of the A&C Act.

The High Court noted that DMRC had conceded that the dispute between the parties under the Contract was arbitral in nature. While observing that the dispute before it was limited to the extent of appointment of an independent arbitrator to adjudicate the disagreements between the parties, the Court appointed a Sole arbitrator and referred the parties to arbitration.

“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 while appointing Justice N.V. Ramana as the Sole Arbitrator to adjudicate the disputes between the parties.

Case Title: Arvind Techno Globe JV vs. Delhi Metro Rail Corporation Ltd

Dated: 06.03.2023

Counsel For the Petitioner: Mr. Rahul Malhotra and Ms. Anchal Tiwari, Advocates

Counsel For the Respondent: Mr. Deepanjay Dutta, Advocate

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