AVS Tech Building Solutionns vs. M/S Parnika Commercial and Estates Pvt. Ltd.
Background
The petitioner sought appointment of a sole arbitrator for a commercial dispute (claimed amount approximately Rs.78.97 lakh). Both parties agreed to first attempt mediation, while the respondent reserved its right to raise objections regarding arbitrability and jurisdiction.
Decision Breakdown
The Court referred the matter to the Delhi HC Mediation and Conciliation Centre (SAMADHAN) for three weeks, while simultaneously appointing Mr. Ritik Malik as sole arbitrator to take over if mediation fails, directing the arbitrator to decide the respondent's preliminary objections at the earliest once the reference begins.
Lesson Learnt
Even where a respondent flags objections to arbitrability or jurisdiction, a court can still appoint an arbitrator and leave those objections to be resolved by the arbitrator first, reflecting the "kompetenz-kompetenz" principle that arbitrators get first say on their own jurisdiction.