In a recent judgment by the Delhi High Court, a Sole Arbitrator, Ms. Leena Tuteja, has been appointed for a case involving the settlement of outstanding dues in a contract for guarding and security services. The case, between the parties involved in the agreement, now moves to arbitration under the aegis of the Delhi International Arbitration Centre (DIAC). Stay tuned for updates on this significant development in the legal arena.
Facts
- Petitioner filed a petition seeking appointment of an Arbitrator under Section 11(6) of the Act.
- On 24 June, 2020, Petitioner sent a demand notice for payment of outstanding amount of Rs.17,36,654/- with interest.
- Petitioner provided services as per the agreement and invoiced for the same.
- The agreement between the parties was for guarding and security services.
- Outstanding amount of Rs.12,36,134.58/- remains unpaid by the Respondent.
Analysis
- Actual balance period of limitation remaining will be effective from 01.03.2022 if it is greater than 90 days.
- The period from 15.03.2020 till 28.02.2022 is excluded in computing periods prescribed under relevant sections of various Acts.
- Exclusion of specific time period allows for determining limitation periods and condoning delays in proceedings.
- The recent decision in M/s Arif Azim Co. Ltd. v. M/s Aptech Ltd. was considered by the Court in relation to limitation period under Section 11 of the Arbitration and Conciliation Act, 1996.
Decision
- The arbitration shall take place under the aegis of the Delhi International Arbitration Centre (DIAC).
- The fee of the Arbitrator shall be paid as per Fourth Schedule under the 1996 Act as amended by the DIAC Rules, 2023.
- The case was referred to arbitration as a settlement was not reached between the parties.
- The period from 15.03.2020 till 28.02.2022 is to be excluded for the purposes of limitation for all judicial or quasi judicial proceedings.
- The balance period of limitation remaining on 03.10.2021 shall become available from 01.03.2022 onwards.
- Ms. Leena Tuteja, Advocate, is appointed as the Sole Arbitrator.
- All pending applications in connection to the matter are disposed of.
Case Title: G4S SECURE SOLUTIONS (INDIA) PVT. LTD. Vs. MATRIX CELLULAR (INTERNATIONAL) SERVICES LTD. (2024:DHC:3750)
Case Number: ARB.P.-427/2024
