Delivery Limited Vs. Far-Left Retail Private Limited (May 2024)

👉The parties to dispute entered into a service agreement and later on, the Respondent defaulted to pay the invoice amount of 8 L circa.

👉The petitioner sent emails on various dates communicating the outstanding payments including the demand notice. Though the Respondent admitted the payment overdue, failed to conclude the issue.

👉Consequently, the petitioner invoked the Arbitration clause and approached the Delhi High Court under section 11 of the A&C Act.

Whereas the Respondent raised following objections as follows:

👉Petitioner failed to initiate amicable settlement before invoking arbitration resulting in non-compliance to the terms of dispute resolution clause.

👉Further, the Respondent alleged that the service rendered was unsatisfactory.

The court observed the following:

 ✍️ The Petitioner has sent various Emails and the legal notice, which was not even responded by the respondent. In fact, endeavor has been made by the petitioner, for an amicable settlement before initiating the Arbitration proceedings.

 👨‍⚖️ 𝑺𝒆𝒄𝒐𝒏𝒅 𝒐𝒃𝒋𝒆𝒄𝒕𝒊𝒐𝒏 𝒊𝒏 𝒓𝒆𝒈𝒂𝒓𝒅 𝒕𝒐 𝒕𝒉𝒆 𝒊𝒏𝒔𝒖𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒄𝒚 𝒐𝒇 𝒔𝒆𝒓𝒗𝒊𝒄𝒆, 𝒊𝒔 𝒐𝒏 𝒕𝒉𝒆 𝒎𝒆𝒓𝒊𝒕𝒔, 𝒘𝒉𝒊𝒄𝒉 𝒕𝒉𝒆 𝒓𝒆𝒔𝒑𝒐𝒏𝒅𝒆𝒏𝒕 𝒊𝒔 𝒂𝒕 𝒍𝒊𝒃𝒆𝒓𝒕𝒚 𝒕𝒐 𝒓𝒂𝒊𝒔𝒆 𝒃𝒆𝒇𝒐𝒓𝒆 𝒕𝒉𝒆 𝒍𝒆𝒂𝒓𝒏𝒆𝒅 𝑨𝒓𝒃𝒊𝒕𝒓𝒂𝒕𝒐𝒓.

⚖️ Considering the limited powers of court entertaining section 11 application and the valid Arbitration Agreement, the present application was and appointed an arbitrator.