07 November 2019
Supreme Court
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M/S SHAF BROADCAST PVT LTD Vs DOORDARSHAN A CONSTITUENT OF PRASAR BHARTI

Bench: HON'BLE MR. JUSTICE UDAY UMESH LALIT, HON'BLE MS. JUSTICE INDU MALHOTRA
Judgment by: HON'BLE MR. JUSTICE UDAY UMESH LALIT
Case number: ARBIT.CASE(C) No.-000036 / 2019
Diary number: 28365 / 2019
Advocates: ABHIMANYU TEWARI Vs


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NON­REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL ORIGINAL JURISDICTION

ARBITRATION PETITION No. 36 OF 2019

M/S. SHAF BROADCAST PVT. LTD.       PETITIONER

VERSUS

DOORDARSHAN – A CONSTITUENT OF PRASAR BHARTI & ANR.     RESPONDENTS

O R D E R  

INDU MALHOTRA, J.

1. The Petitioner has filed an Application under Section

11 of the  Arbitration  &  Conciliation  Act,  1996  for

appointment of an Arbitrator on behalf of Respondent

No. 1 – Doordarshan, in an international commercial

arbitration.

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2. The Petitioner – Company and Respondent No. 2

entered into a Contract dated 08.03.2010 with

Respondent No. 1 – Doordarshan. The Contract

contains an arbitration clause, which reads as under :

“8.2 Arbitration: In the case of

dispute arising upon or in relation to

or in connection with the Contract

between HB and the Entity, which has

not been settled amicably, any Party

can refer the dispute for Arbitration

under (Indian) Arbitration and

Conciliation Act, 1996. Such disputes

shall be referred to an Arbitral

Tribunal consisting on 3 (three)

arbitrators, one each to be appointed

by HB and the Entity, the third

arbitrator shall be chosen by the two

arbitrators so appointed by the

Parties which shall  act  as Presiding

Arbitrator. In case of failure of the

two arbitrators, appointed by the

Parties to reach a consensus

regarding the appointment of the

third arbitrator within a period of

Thirty (3) days from the date of

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appointment of the two arbitrators,

the Presiding Arbitrator shall be

appointed by the Secretary of the

Ministry of Information and

Broadcasting, Government of India.

The Arbitration and Conciliation Act,

1996 and any statutory modification

or re­enactment thereof shall apply to

these Arbitration proceedings.

8.3  Arbitration  proceedings shall be

held in India  at  New Delhi  and the

language of the Arbitration

proceedings and that of all

documents and communications

between the Parties shall be English.

The law as applicable in India shall

govern  the  rights  and obligations  of

the parties.”

3. Disputes arose between the parties, which led to the

invocation of the arbitration clause on 14.01.2019 by

the Petitioner – Company. The Petitioner – Company

nominated its arbitrator on 28.02.2019 in terms of

the agreement. However, Respondent No. 1 –

Doordarshan failed to nominate an arbitrator.

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Consequently, the Petitioner – Company has filed the

present Application under Section 11 of the

Arbitration & Conciliation Act, 1996 seeking

appointment of an Arbitrator by the Court on behalf

of Respondent No. 1 – Doordarshan.

4. Even though the arbitration agreement provides for a

three­member arbitral tribunal, the  Counsel for all

the parties at the time of hearing, requested for the

appointment of a Sole Arbitrator in modification of

the arbitration clause stipulating a three­member

tribunal, to adjudicate the disputes.

5. Accordingly, with the consent of the Counsel for the

parties, we appoint Mr. Justice (Retd.) A. M. Sapre,

Former Judge,  Supreme Court  of India  as the Sole

Arbitrator subject to the declarations being made

under Section 12 of the Arbitration and Conciliation

Act, 1996 with respect to independence and

impartiality, and the ability to devote sufficient time

to complete the arbitration within the period of 12

months. The learned Arbitrator is requested to

complete the proceedings within the time­limit

specified under Section 29A.

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6. The arbitration clause specifies that the Seat of

arbitration will be at New Delhi, India. We direct the

arbitration be conducted at New Delhi as the Seat of

arbitration.

7. The Arbitrator will  be paid fees in accordance with

the Fourth Schedule of the Arbitration and

Conciliation Act, 1996 as amended.

8. A copy of this  Order  be despatched to Mr.  Justice

(Retd.) A. M. Sapre, Former Judge, Supreme Court of

India at the following address:

“Mr. Justice (Retd.) A. M. Sapre, Former Judge, Supreme Court of India, C­203, Second Floor Sarvodaya Enclave New Delhi – 110017 Tel No.: 011­40254823 Mob. No.: 7042955488”

The parties are directed to appear before the learned

Arbitrator on 15.11.2019 at 11 a.m.

The matter is disposed of accordingly.

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…..……...........................J. (UDAY UMESH LALIT)

..….……..........................J. (INDU MALHOTRA)

…..……...........................J. (SANJIV KHANNA)

New Delhi; November 7, 2019.