{"id":158912,"date":"2002-03-22T00:00:00","date_gmt":"2002-03-21T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/sudhir-goel-vs-s-p-sabarwal-and-anr-on-22-march-2002"},"modified":"2015-08-28T00:27:52","modified_gmt":"2015-08-27T18:57:52","slug":"sudhir-goel-vs-s-p-sabarwal-and-anr-on-22-march-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/sudhir-goel-vs-s-p-sabarwal-and-anr-on-22-march-2002","title":{"rendered":"Sudhir Goel vs S.P. Sabarwal And Anr. on 22 March, 2002"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Sudhir Goel vs S.P. Sabarwal And Anr. on 22 March, 2002<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2003 41 SCL 325 Delhi<\/div>\n<div class=\"doc_author\">Author: S Sinha<\/div>\n<div class=\"doc_bench\">Bench: S Sinha, A Sikri<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p>S.B. Sinha, C.J. <\/p>\n<p> 1. A notice of an arbitrator appointed by this Court in<br \/>\nexercise of its power conferred upon it under Section 11 of the<br \/>\nArbitration and Conciliation Act, 1996 (hereinafter referred to as &#8216;the said Act&#8217;) was questioned by the appellant herein by filing a writ<br \/>\npetition, which was dismissed by reason of the impugned judgment<br \/>\ndated 05.03.2000.\n<\/p>\n<p> 2. The appellant herein was employed with respondent No.\n<\/p>\n<p>2. A dispute arose as regards enforceability of a bond executed by<br \/>\nthe appellant for his refusal to serve respondent No. 2 for a period of<br \/>\n7 years which is said to be the condition for being sent to Japan.\n<\/p>\n<p> 3. A noticed dated 21.09.2000 was served upon the<br \/>\npetitioner by the company, i.e., respondent No. 2 directing him to<br \/>\nserve the company for 7 years or pay damages amounting to<br \/>\nRs.66,72,000\/-.\n<\/p>\n<p> 4. According to the petitioner, the said notice did not<br \/>\nconform to the provisions of Section 21 of the said Act.\n<\/p>\n<p> 5. The appellant contended that there did not exist any<br \/>\narbitration clause for resolution of the dispute as raised by the<br \/>\nrespondent and, in any event, the said purported legal notice is de<br \/>\nhors&#8217; the alleged agreement bond. A reply to the said notice was sent<br \/>\nby the appellant vide letter dated 23.10.2000 denying the existence of<br \/>\nany agreement bond and asserting that the respondent No. 2 itself<br \/>\nhad driven the appellant out of employment by irritating him so<br \/>\nmuch that he had to seek prolonged medical advice.\n<\/p>\n<p> 6. The respondent No. 2 appointed one Mr. Ravi Sharma, as<br \/>\narbitrator, who called upon the appellant herein to appear before him<br \/>\non 05.01.2001. The appellant questioned his jurisdiction by sending<br \/>\na letter dated 23\/26.12.2000  <\/p>\n<p> 7. He thereafter filed a suit, which was marked as Civil Suit<br \/>\nNo. 2 of 2001 praying therein that the aforementioned Mr. Ravi<br \/>\nSharma be required to produce warrant of appointment as arbitrator.\n<\/p>\n<p> In the said suit, a copy of the said purported agreement dated<br \/>\n08.08.1997 containing an arbitration clause in which Mr. Ravi<br \/>\nSharma was named as an arbitrator, was produced.\n<\/p>\n<p> 8. The contention of the petitioner was that his signature in<br \/>\nthe said agreement was obtained without filing in the blanks.\n<\/p>\n<p> 9. He thereafter filed an application before this Court<br \/>\npraying inter alia for the following reliefs including :-\n<\/p>\n<p> (A) Direct the respondents to produce in this<br \/>\nHon&#8217;ble Court this original of the alleged<br \/>\n&#8216;Agreement&#8217; allegedly dated 08.08.1997, and  <\/p>\n<p> (B1) Declare the alleged &#8216;Agreement&#8217; allegedly<br \/>\ndated 08.08.1997 (copy in annex &#8211; A\/11), as ab<br \/>\ninitio null and void, <\/p>\n<p> (B2) If (B1) is not granted, declare arbitration clause<br \/>\n(para 14) in the alleged &#8216;Agreement&#8217; allegedly<br \/>\ndated 08.08.1997 as ab initio null and void, <\/p>\n<p> (C) If (B1) or (B2) is not granted, declare<br \/>\nrespondent-3 as an usurper in the office of<br \/>\narbitrator in any dispute between Applicant and<br \/>\nthe Company (respondent-1 through<br \/>\nrespondent-2), <\/p>\n<p> (D)  Appoint an arbitrator (if (B1) or (B2) is not<br \/>\ngranted) under Section 11(5) of the Arbitration<br \/>\n&amp; Conciliation Act (46 of 1996), <\/p>\n<p> (E) Declare that arbitral proceeding have not yet<br \/>\ncommenced for want of compliance with<br \/>\nprovisions of Section 21 of the Act, <\/p>\n<p> (F) Any other relief, with costs, may be granted, <\/p>\n<p> (G) Meanwhile, respondent-3 may be restrained<br \/>\nfrom functioning as arbitrator in any dispute<br \/>\nbetween the Applicant and respondents-1, 2<br \/>\nalleged to flow from the alleged &#8216;Agreement&#8217;<br \/>\n(A\/11), till final disposal of this Application.&#8221;\n<\/p>\n<p> By an order dated 06.12.2001, the learned Single Judge<br \/>\nof this Court in A.A. No. 17 of 2001 after hearing the parties by an<br \/>\norder dated 05.03.2002 appointed the respondent No. 1 herein as an<br \/>\narbitrator to adjudicate upon the disputes between the parties. The<br \/>\nsaid order reads thus :-\n<\/p>\n<p> &#8220;Reply stated to have been filed is not<br \/>\non record. Copy thereof has also not been<br \/>\nhanded over to the counsel for petitioner. In<br \/>\nany event of the matter, with the consent of<br \/>\nthe parties, I appoint Mr. SP Saberwal,<br \/>\nretired District Judge of Delhi as arbitrator<br \/>\nto adjudicate upon the disputes between the<br \/>\nparties under Arbitration &amp; Conciliation Act,<br \/>\n1996. Intimation of appointment be sent to<br \/>\nthe arbitrator. The arbitrator is directed to<br \/>\nstart the proceedings do novo.\n<\/p>\n<p> Petitioner stands disposed of. dusty.&#8221;\n<\/p>\n<p> 10. The appellant did not question the said judgment. The<br \/>\narbitrator, however, issued a notice to the appellant, which is in the<br \/>\nfollowing terms :-\n<\/p>\n<p> &#8220;NOTICE  <\/p>\n<p> WHEREAS vide order dated 6.12.2001 passed<br \/>\nin AA No: 17\/2001, by Hon&#8217;ble Mr. Justice Vijender<br \/>\nJain, High Court of Delhi, in the abovenoted case the<br \/>\nundersigned has been appointed as Arbitrator to<br \/>\nadjudicate upon disputes between the parties under the<br \/>\nArbitration &amp; Conciliation Act, 1996  <\/p>\n<p> AND WHEREAS, the undersigned has entered<br \/>\nupon the reference  <\/p>\n<p> WHEREAS notice is given to the parties to<br \/>\nappear before the undersigned themselves or through<br \/>\ntheir Advocate\/Representative, on Saturday the 2nd<br \/>\nFebruary, 2002, at 10.00 am in the Office of the State<br \/>\nConsumer Disputes Redressal Commission, Room No<br \/>\n5, A &#8211; Block, Vikas Bhawan, First Floor, IP Estate,<br \/>\nNew Delhi &#8211; 110002  <\/p>\n<p>Sd\/-\n<\/p>\n<p>(SP SABERWAL) <\/p>\n<p> ARBITRAtor <\/p>\n<p> D-I\/13, Bharati Nagar, <\/p>\n<p> New Delhi &#8211; 110003 <\/p>\n<p> Tele : (Res) 469-2286, 469-3470  <\/p>\n<p>(Off) 337-9146; Mobile: 9810285966&#8243;\n<\/p>\n<p> 11. According to the petitioner, respondent No. 1 was not<br \/>\ncompetent to enter into the said reference having regard to the fact<br \/>\nthat no requisite notice under Section 21 of the said Act was served.\n<\/p>\n<p> 12. The learned Single Judge by reason of the impugned<br \/>\njudgment rejected the said contention raised on behalf of the<br \/>\nappellant herein inter alia on the ground that once the arbitrator was<br \/>\nappointed, there was no necessity now to issue any notice under<br \/>\nSection 21 of the said Act.\n<\/p>\n<p> 13. Mr. G.K. Aggarwal, the learned counsel appearing on<br \/>\nbehalf of the appellant would submit that there did not exist any<br \/>\narbitration clause in the agreement bond as the blanks had not been<br \/>\nfilled up.\n<\/p>\n<p> 14. The learned counsel would contend that the prayed for<br \/>\nappointment of the arbitrator in his arbitration application being A.A.<br \/>\nNo. 17 of 2001 was made by way of an alternative relief and by<br \/>\nreason thereof, the valuable right of the appellant in terms of Section<br \/>\n21 of the said Act cannot be taken away.\n<\/p>\n<p> 15. In support of the aforesaid contention, strong reliance<br \/>\nhas been placed on   <a href=\"\/doc\/1623192\/\">Jupiter Chit Fund Pvt. Ltd. v. Shiv Narain Mehta,<\/a>    .\n<\/p>\n<p> 16. Mr. R.K. Saini, the learned counsel appearing on behalf<br \/>\nof the respondent, on the other hand, would submit that the writ<br \/>\npetition is not maintainable as the appellant herein can raise the<br \/>\nobjections taken herein only before the arbitral tribunal.\n<\/p>\n<p> 17. It was contended that having regard to the prayer made<br \/>\nby the appellant in his arbitration application to the effect that an<br \/>\nindependent arbitrator be appointed and such a prayer having been<br \/>\ngranted, he is now estopped and precluded from contending that the<br \/>\narbitration proceedings are vitiated by reason of non-service of notice<br \/>\nunder Section 21 of the said Act.\n<\/p>\n<p> 18. In this Letters Patent Appeal, this Court is not concerned<br \/>\nwith as regards the validity of the first arbitration proceedings, which<br \/>\nwere initiated at the instance of respondent No. 2. In any event, the<br \/>\nsaid arbitration proceedings have been set at naught by this Court at<br \/>\nthe instance of the appellant himself and thus, he cannot be<br \/>\npermitted to raise the said questions once over again.\n<\/p>\n<p> 19. Having regard to the fact that the arbitrator was<br \/>\nappointed with the consent of the appellant, he is now estopped and<br \/>\nprecluded from raising the said contention.\n<\/p>\n<p> 20. Having regard to the provisions contained in Section 16<br \/>\nof the said Act, we are of the opinion that now all the contentions<br \/>\nmust be raised before the arbitrator himself.\n<\/p>\n<p> 21. As noticed hereinabove, the appellant herein had not<br \/>\nquestioned and could not question the said order dated 05.03.2002<br \/>\nof the learned Single Judge. He merely challenged the notice issued<br \/>\nby the learned arbitrator. Such a notice cannot be, in our opinion,<br \/>\nthe subject matter of a writ petition.\n<\/p>\n<p> 22. In any event, no writ petition can also be filed having<br \/>\nregard to the decisions of the Apex Court in   <a href=\"\/doc\/202973\/\">Konkan Railway<br \/>\nCorporation Ltd. &amp; Anr. v. Rani Construction Pvt. Ltd.,<\/a> 2002 (1) SCALE 465    wherein it<br \/>\nhas been held that when an arbitrator is appointed in terms of<br \/>\nSection 11 of the said Act, no writ petition would be maintainable. A<br \/>\nnotice of the arbitrator, in our opinion, cannot be subject matter of a<br \/>\nwrit petition.\n<\/p>\n<p> 23. Furthermore, at this stage, the Court cannot put the<br \/>\nclock back by setting aside the order of appointment of the arbitrator<br \/>\nand directing the parties to take recourse to the provisions of Section<br \/>\n21 of the said Act.\n<\/p>\n<p> 24. Even assuming that the provisions of Section 21 of the<br \/>\nsaid Act are mandatory, the appellant by his conduct may be held to<br \/>\nhave waived the same. We may notice that in relation to composition<br \/>\nof the arbitral tribunal if not challenged the same has been held to<br \/>\nhave been waived by the Apex Court recently in   <a href=\"\/doc\/413018\/\">Narayan Prasad<br \/>\nLohia v. Nikunj Kumar Lohia &amp; Ors.,<\/a> 2002 (2) SCALE 232   wherein it was held :-\n<\/p>\n<p>  &#8220;20. Respondents 1 and 2 not having raised any<br \/>\nobjection to the composition of the arbitral<br \/>\ntribunal, as provided in Section 16, they must be<br \/>\ndeemed to have waived their right to object.&#8221;\n<\/p>\n<p> 25. The decision of the Apex court in Jupiter Chit Fund&#8217;s<br \/>\ncase (Supra), was rendered in a case where the Court was concerned<br \/>\nwith the provisions of Section 37 of Arbitration Act, 1940. The said<br \/>\ndecision has no application in the facts and circumstances of this<br \/>\ncase.\n<\/p>\n<p> 26. For the reasons aforementioned, we are of the opinion<br \/>\nthat no case has been made out for interference with the impugned<br \/>\norder. This appeal is accordingly dismissed. However, in the facts<br \/>\nand circumstances of the case, there shall be no order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Sudhir Goel vs S.P. Sabarwal And Anr. on 22 March, 2002 Equivalent citations: 2003 41 SCL 325 Delhi Author: S Sinha Bench: S Sinha, A Sikri JUDGMENT S.B. Sinha, C.J. 1. A notice of an arbitrator appointed by this Court in exercise of its power conferred upon it under Section 11 of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-158912","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Sudhir Goel vs S.P. 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