Worlds Window Infrastructure & Logistics Pvt. Ltd v. Central Warehousing Corporation

NAVIN CHAWLA, J AUGUST 14, 2018/rv

ARB. P. 437/2018 & O.M.P. (T) (COMM.) 45/2018 Page 1 * IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 24th July, 2018 Date of Decision: 14th August, 2018 + ARB.P. 437/2018 & IA No. 7725/2018 + O.M.P. (T) (COMM.) 45/2018 & IA No. 7727/2018 WORLDS WINDOW INFRASTRUCTURE & LOGISTICS PVT. LTD. ..... Petitioner Through: Mr.Amit Sibal, Sr. Adv. with Mr.Prashant Mehta, Mr.Ashutosh Shukla, Mr.Gaurav Malik, Ms.Neeharika Aggarwal, Mr.Dhritiman Roy, Advs. versus CENTRAL WAREHOUSING CORPORATION ..... Respondent Through: Mr.Sandeep Sethi, ASG with Mr.Shaiwal Srivastava, Ms.Aayeshi Agarwal, Advs. CORAM: HON'BLE MR. JUSTICE NAVIN CHAWLA 1. This is a classic case of how a party can delay the arbitration proceedings on one pretext or another by filing repeated petitions thereby defeating the very purpose of an Arbitration Agreement. 2. The petitioner has filed Arbitration Petition no. 437/2018 under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the "Act") making the following prayers:- ARB. P. 437/2018 & O.M.P. (T) (COMM.) 45/2018 Page 2 "i. Appoint a sole arbitrator as per the provisions of Arbitration and Conciliation Act, 1996 pursuant to Clause 21 of the Agreement dated 26.04.2004 entered into between the parties; ii. Direct that the dispute as to whether or not the Award dated 20.11.2014 as passed by the Chairman is an Arbitration Award or settles all disputes or waives the right to arbitrate, be decided as the preliminary issue iii. Stay the purported arbitral proceedings fixed by the purported arbitrator Ms Sheila Sangwan fixed for 31.5.2018 during the pendency of the present petition;" 3. The petitioner simultaneously filed OMP (T) (COMM) 45/2018 under Section 14 read with Section 12 of the Act making the following prayers: "(a) Declare that the mandate of the purported Arbitrator Ms. Sheila Sangwan stands terminated; or (b) Terminate the mandate of the purported Arbitrator Ms. Sheila Sangwan; (c) Stay the purported arbitral proceedings fixed by the purported arbitrator Ms Sheila Sangwan fixed for 31.5.2018 during the pendency of the present petition;" 4. The disputes between the parties are in relation to the Agreement dated 16.02.2005 executed between them whereby the petitioner was appointed by the respondent as a Strategic Alliance Management Operator (SAMO) for equipping, marketing, operation and maintenance of its Inland Container Depot at Loni, Ghaziabad. The said Agreement contains an Arbitration Agreement in form of Clauses 20 and 21 thereof, which are reproduced hereinbelow:- "20.0. A Joint Committee with equal number of representatives (those not directly involved in the day to day business operations of either party at the Facility) ARB. P. 437/2018 & O.M.P. (T) (COMM.) 45/2018 Page 3 from CWC and the World's Window shall be constituted for the administration of the Management Contract. Any disputes arising out of the implementation of the contract this shall be looked into by this committee for resolution. The Joint Committee comprising three authorized representatives including Regional manager of Central Warehousing Corporation and equal number of authorized representatives of the World's Window concerned shall be authorised, after going into all pros and cons without jeopardising the financial interest of CWC, as contained in the agreement, to amend the terms and conditions for smooth and hassle free operation so long as the overall structure of the contract does not change. 21.0 It is understood by both the parties that any dispute arising out of this Contract, not resolved by the Joint Committee, shall be referred to an Advisory Committee to be jointly appointed by the parties. In case the parties fail to arrive at any satisfactory resolution, the dispute arising out of any matter relating to this contract shall be governed by the Arbitration and Conciliation Act, 1996. It is also a term of this contract that no person other than a person appointed by MD, Central Warehous