Delhi High Court appoints former Chief Justice of India NV Ramana as sole arbitrator in Arvind Techno Globe JV v. DMRCL dispute

The Delhi High Court recently appointed retired Chief Justice of the Supreme Court of India, NV Ramana as the sole arbitrator to adjudicate a dispute between M/s Arvind Techno Globe (JV) and the Delhi Metro Rail Corporation Limited (DMRCL) regarding a 2013 contract between the two parties. [M/s Arvind Techno Globe v. Delhi Metro Rail Corporation Limited].Justice Chandra Dhari Singh passed the order on March 6 after questions were raised by Arvind Techno Globe (petitioner) over the independence of names proposed by DMRCL for appointment as arbitrator.."Justice N.V. Ramana, Former Chief Justice of India is appointed as a sole arbitrator to adjudicate the disputes between the parties which have arisen under the Contract Agreement dated 22nd July, 2013," the Court's order stated. .The Court added that the arbitrator's fees shall be paid as laid down in the Delhi International Arbitration Centre (DIAC) (Administrative Cost and Arbitrators Fees) Rules, 2018.The parties were ordered to appear before the arbitrator within 10 days..Disputes between the parties emerged over the payment owed by DMRCL to Arvind Techno Globe for work carried pursuant to a 2013 contract between the two.The project awarded by DMRCL to the petitioner is stated to have been completed in 2018, after a 27-month delay that the latter attributed to DMRCL's actions. After the completion of work, the petitioner raised a claim of ₹ 20,64,14,428 under several heads. DMRCL, however, is stated to have denied this claim. .The parties initially attempted to work out their differences via conciliation, but later moved on to finding solutions through arbitration after the conciliation process was not completed within a reasonable time. .While so, the petitioner contended that DMRCL had refused to appoint an independent arbitral tribunal of arbitrators. This led the petitioner to file a plea before the High Court under Section 11 (appointment of arbitrators) of the Arbitration and Conciliation Act, 1996.The Court was told by the petitioner that DMRCL had suggested five names in violation of the Supreme Court's judgment in Voestalpine Schienen GmbH vs. Delhi Metro Rail Corporation Ltd. .As per the order, DMRCL had proposed the names of persons who were either from the National High-Speed Rail Corporation Limited (NHSRCL) or the Indian Railway Service of Engineers (IRSE). .DMRCL asserted that none of these nominees were affiliated to DMRCL, which is a Joint Venture between the government of India and the government of Delhi. As such, DMRCL added that these persons would not fall under the categories listed in the seventh schedule to the Arbitration Act, which deals with the disqualification of persons from being appointed as arbitrators on account of potential bias..The Court ultimately decided to refer the matter to a sole arbitrator appointed by it after taking note that there was no dispute over whether the dispute was arbitral in nature. ."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. .Having appointed former Chief Justice Ramana as the independent sole arbitrator, the Court proceeded to dispose of the plea. .Advocates Rahul Malhotra and Anchal Tiwari appeared for M/s Arvind Techno Globe JV whereas advocate Deepanjay Dutta appeared for DMRCL..[Read Order]