Facts of the Case

The Petitioner, Lt. Col. Vijay Singh Sandhu, filed a petition under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator. The matter was listed for hearing on 9 March 2015.

The Petitioner placed on record proof of service of notice upon the Respondent, Kingstar Entrepreneur Pvt. Ltd., through email. Despite such service, none appeared on behalf of the Respondent before the Court.

Issues Involved

  1. Whether the interim order previously granted by the Court should continue during the pendency of arbitral proceedings.
  2. Whether absence of the Respondent affects continuation of interim protection.

Petitioner’s Arguments

  • The Petitioner had duly served notice upon the Respondent through email.
  • The arbitration process had already been initiated under Section 11 of the Act.
  • Interim protection granted earlier by the Court should continue to safeguard the Petitioner’s interests during arbitration proceedings.

Respondent’s Arguments

  • None appeared on behalf of the Respondent despite service of notice.

Court’s Findings / Order

  • The Court noted that the Respondent had been served but chose not to appear.
  • Considering the circumstances, the Court directed that the interim order dated 22 April 2014 shall continue during the pendency of arbitral proceedings.
  • The Court clarified that such interim protection would remain subject to modification or clarification by the learned Arbitrator upon any application filed under Section 17 of the Arbitration and Conciliation Act, 1996.
  • The petition was accordingly disposed of in these terms.

Important Clarification

  • The Court emphasized that once arbitration proceedings commence, the Arbitral Tribunal has the authority under Section 17 to modify, vacate, or clarify interim orders.
  • This reinforces the principle that post-constitution of the Tribunal, interim jurisdiction shifts from Court to Arbitrator.

Link to download the order -  https://delhihighcourt.nic.in/app/case_number_pdf/2015:DHC:11694/SMD12022015OMP4372014_150426.pdf

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