DLF HOME DEVELOPERS LIMITED versus RAJAPURA HOMES PRIVATE LIMITED & ANR.

DLF HOME DEVELOPERS LIMITED versus RAJAPURA HOMES PRIVATE LIMITED & ANR.

The Court held that (i) the RCMA and SCMA contain valid arbitration clauses and the petitioner satisfied the primary twin-test under Section 11(6) (existence of written arbitration agreement and prima facie arbitrable dispute); (ii) despite overlaps, the Share Purchase Agreements and the Construction Management Agreements have different objects and fields, and the disputes about non-deposit/payment of the agreed amount as 'Fee' fall to be adjudicated under Clause 11 of the RCMA/SCMA; (iii) the court may conduct a limited prima facie review under Section 11 to ensure the dispute correlates to the arbitration clause invoked; and (iv) for avoidance of multiplicity and conflicting awards the...

Parties
Petitioner: DLF Home Developers Limited; Respondent: Rajapura Homes Private Limited; Respondent: Resimmo PCC
Jurisdiction
India
Judgment Date
22 September 2021
Procedural Posture
Arbitration Petition / Petitions Under Section 11(6) Read With Section 11(12) of the Arbitration and Conciliation Act, 1996 for Appointment of Sole Arbitrator
Outcome
Arbitration Petition No.16 of 2020 and Arbitration Petition No.17 of 2020 allowed
Legal Topics
Appointment of Arbitrator Under Section 11, Scope of Court Review at Referral Stage (section 11(6)/(6 A)), Competence Competence (section 16), Seat and Venue of Arbitration, Consolidation of Arbitrations
Arbitration Law Contract Law Civil Procedure Appointment of Arbitrator Under Section 11 Scope of Court Review at Referral Stage (section 11(6)/(6 A)) Competence Competence (section 16) Seat and Venue of Arbitration Consolidation of Arbitrations

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Parties

DLF Home Developers Limited

Petitioner

Rajapura Homes Private Limited

Respondent

Resimmo PCC

Respondent

Procedural Posture

Arbitration Petition / Petitions Under Section 11(6) Read With Section 11(12) of the Arbitration and Conciliation Act, 1996 for Appointment of Sole Arbitrator

Legal Issues

  1. 1 Whether disputes between the parties fall to be adjudicated under the RCMA/SCMA arbitration clause (seat New Delhi) or under the Share Purchase Agreements clause (SIAC, seat Singapore)
  2. 2 Scope of judicial review under Section 11(6) and Section 11(6-A) when two related but distinct arbitration clauses exist
  3. 3 Whether proceedings under two separate construction agreements should be consolidated before a single arbitrator

Ratio Decidendi

The Court held that (i) the RCMA and SCMA contain valid arbitration clauses and the petitioner satisfied the primary twin-test under Section 11(6) (existence of written arbitration agreement and prima facie arbitrable dispute); (ii) despite overlaps, the Share Purchase Agreements and the Construction Management Agreements have different objects and fields, and the disputes about non-deposit/payment of the agreed amount as 'Fee' fall to be adjudicated under Clause 11 of the RCMA/SCMA; (iii) the court may conduct a limited prima facie review under Section 11 to ensure the dispute correlates to the arbitration clause invoked; and (iv) for avoidance of multiplicity and conflicting awards the...

Court Disposition

Arbitration Petition No.16 of 2020 and Arbitration Petition No.17 of 2020 allowed

Orders

  • Mr. Justice (Retd.) R.V. Raveendran, Former Judge, Supreme Court of India appointed as sole arbitrator to resolve all disputes/differences between the parties
  • The arbitrator will be paid fees in accordance with the Fourth Schedule of the Arbitration and Conciliation Act, 1996 as amended from time to time