{"id":210572,"date":"2002-12-12T00:00:00","date_gmt":"2002-12-11T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/survi-projects-vs-veda-research-lab-pvt-ltd-on-12-december-2002"},"modified":"2018-10-14T11:03:59","modified_gmt":"2018-10-14T05:33:59","slug":"survi-projects-vs-veda-research-lab-pvt-ltd-on-12-december-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/survi-projects-vs-veda-research-lab-pvt-ltd-on-12-december-2002","title":{"rendered":"Survi Projects vs Veda Research Lab Pvt. Ltd. on 12 December, 2002"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Survi Projects vs Veda Research Lab Pvt. Ltd. on 12 December, 2002<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2003 (1) ARBLR 347 Delhi, 102 (2003) DLT 690<\/div>\n<div class=\"doc_author\">Author: S Agarwal<\/div>\n<div class=\"doc_bench\">Bench: S Agarwal<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p>S.K. Agarwal, J.  <\/p>\n<p> 1.<br \/>\nBy this petition under Section 11(5) of the<br \/>\nArbitration and Conciliation Act, 1996 (for short &#8220;the<br \/>\nAct&#8221;), petitioners have prayed for appointment of an<br \/>\nindependent Arbitrator to adjudicate disputes between the<br \/>\nparties.\n<\/p>\n<p> 2. It is pleaded that applicant-M\/s. Survi Projects<br \/>\nentered into a contract with the respondent-M\/s. Veda<br \/>\nResearch Lab Pvt. Ltd. on 31.1.1998 at Delhi for the<br \/>\nconstruction of a factory building at Plot No. D-97-98,<br \/>\n105-106, Greater Noida for the respondent; the stipulated<br \/>\nperiod for completion of the contract was seven months;<br \/>\nhowever, due to various alleged breaches committed by the<br \/>\nrespondent in the contract, the work could not be<br \/>\ncompleted within the original stipulated time of<br \/>\ncompletion of the contract. The respondent took<br \/>\npossession of the building in October, 1999 and using the<br \/>\nsame since then. It is pleaded that even though the<br \/>\npossession of the building was taken by the respondent as<br \/>\nearly on October, 1999, but the final payment as well as<br \/>\nvarious other claims of the petitioner were not settled.<br \/>\nBy letter dated 26.4.2001, petitioner called upon the<br \/>\nrespondent to settle and pay various amounts due to the<br \/>\npetitioner, and the respondent failed to pay the claims.<br \/>\nUnder Clause 37, it was agreed that all dispute arising<br \/>\nout of the contract are to be settled by arbitration. In<br \/>\naccordance with the arbitration agreement, the petitioner<br \/>\nfirst referred the disputes to the architect for his<br \/>\ndecision with copy of the respondent. On these pleadings<br \/>\nthe petitioner has prayed for appointment of the<br \/>\narbitrator. The respondent has filed the reply, opposing<br \/>\nthe application, inter alia pleading that the application<br \/>\nfor appointment of the arbitrator is not maintainable in<br \/>\nas much as the applicant has not followed the procedure<br \/>\nprescribed under Clause 37 of the Agreement. In terms of<br \/>\nClause 37 of the Agreement, in the event of respondent not<br \/>\nagreeing or consenting in the appointment of the<br \/>\narbitrator suggested by the applicant, a panel of three<br \/>\narbitrators is required to be appointed to adjudicate upon<br \/>\nthe disputes between the parties to the agreement. The<br \/>\napplicant ought to have taken recourse to the said<br \/>\nprocedure. The application as such is liable to be<br \/>\ndismissed.\n<\/p>\n<p> 3. Law with regard to appointment of the arbitrator<br \/>\nunder Section 11 of the Act by the Chief Justice or his<br \/>\ndesignate is well settled. Section does not contemplate a<br \/>\ndecision by the Chief Justice or his designate, on any<br \/>\ncontroversy between the parties. The decision to nominate<br \/>\nis not adjudicatory but is administrative. This Section<br \/>\ndoes not contemplated even a response from other party.<br \/>\nThe only function of the Chief Justice or his designate<br \/>\nunder Section 11(6) is to fill the gap left by a party to<br \/>\nthe arbitration agreement. This is to enable the Arbitral<br \/>\nTribunal to be expeditiously constituted and the<br \/>\narbitration proceedings to commence. Reference in this<br \/>\nregard may be made to the Apex Court&#8217;s in  <a href=\"\/doc\/202973\/\">Konkan Railways<br \/>\nCorporation Ltd. v. Rani Construction Pvt. Ltd.,<\/a> 2002<br \/>\n(1) Scale 465 and  <a href=\"\/doc\/1752565\/\">Konkan Railway Construction Corporation<br \/>\nLtd. v. Mehul Construction Co.,<\/a> .\n<\/p>\n<p> 4. Learned counsel for parties after arguing the<br \/>\nmatter for some time agreed that since the matter required<br \/>\nto be adjudicated is of technical nature, and as parties<br \/>\nhave failed upon to refer the disputes to a single<br \/>\narbitrator for arbitration, parties may be permitted to<br \/>\nnominate one arbitrator each who should be fellow of the<br \/>\nIndian Institute of Architect and some third independent<br \/>\narbitrator be appointed by the court for expeditious<br \/>\ndisposal of the claims or counter claims.\n<\/p>\n<p> 5. Accordingly, parties are directed to nominate their<br \/>\nrespective Arbitrator within two weeks. Mr. K.P. Verma,<br \/>\nformer District &amp; Sessions Judge, Delhi, Flat No. 29,<br \/>\n&#8220;UTTARANCHAL&#8221;, Plot No. 5, Patparganj, Delhi-110092 is<br \/>\nhereby appointed as the third Arbitrator for the purpose<br \/>\nof adjudicating upon the claims and counter-claims of the<br \/>\nparties, along with two arbitrators one each nominated by<br \/>\nthe parties. The Arbitrator shall fix his own fee.\n<\/p>\n<p> With above direction, petition stands disposed<br \/>\nof. Copy of order be sent to the parties as well as to<br \/>\nthe Arbitrator.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Survi Projects vs Veda Research Lab Pvt. Ltd. on 12 December, 2002 Equivalent citations: 2003 (1) ARBLR 347 Delhi, 102 (2003) DLT 690 Author: S Agarwal Bench: S Agarwal JUDGMENT S.K. Agarwal, J. 1. By this petition under Section 11(5) of the Arbitration and Conciliation Act, 1996 (for short &#8220;the Act&#8221;), petitioners [&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-210572","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>Survi Projects vs Veda Research Lab Pvt. 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