Etoile Creations vs Sarl Dnset Deco

2. Briefly stated case of the petitioner is as under:- Petitioner is a proprietorship firm having its registered office at C-291, Suraj Mal Vihar, Delhi. The petitioner is engaged in the business of manufacturing of products relating to home furnishing and upholstery etc., exclusively for the respondent since 2000. The respondent-SARL DANSET DECO is a concern having its office at 240 Rue De La Lys 59250, Halluin, France which is engaged in the business of purchase and sale of the product relating to home furnishing and upholstery and is the buyer of the products manufactured by the petitioner. Accordingly, a ‘Buyers Agreement’ was executed on 18.10.2012 at New Delhi between the petitioner and the respondent. As per the aforesaid agreement, the petitioner has been selling/supplying its aforesaid products and the respondent has been buying/purchasing the products for resale/sale in the territory of France. There was a long business relationship since 2000, even prior to execution of the agreement and the petitioner was regularly supplying the products to the respondent. At the time of execution of the aforesaid agreement, it was acknowledged that the respondent owes a total amount of Euro 367814.80 as the outstanding amount. The details of the outstanding dues have been mentioned in Schedule-I of the ‘Buyers Agreement’. The petitioner has alleged that as per the terms and conditions of the ‘Buyers Agreement’ dated 18.10.2012, the respondent did not release the said outstanding amount within seven days of the agreement. Despite numerous reminders for the payment of dues through e-mails, SMS messages exchanged between the parties during November 2012 to April 2013 and subsequent legal notices sent to the respondent, the respondent failed to pay the admitted dues of the petitioner.

4. As the respondent did not make the payment of the invoices, the petitioner invoked arbitration clause agreed in Clause 14 of the ‘Buyers Agreement’ for the appointment of three arbitrators, one to be nominated by each party and the third to be appointed by the two appointed arbitrators. As per Clause 14 of the ‘Buyers Agreement’, the petitioner sent a statutory notice dated 14.08.2013, nominating on his behalf Mr. Subhash Chandra, LLM, Higher Judicial Services (V.R.S.), Member Judicial, Railway Claims Tribunal (Retd.) as an arbitrator. Petitioner requested the respondent to nominate its arbitrator so as to enable these arbitrators nominated by the parties to further nominate the presiding arbitrator and constitute an arbitral tribunal.

9. In the result, we allow this petition and appoint Mr. Justice Kailash Gambhir, a Former Judge, Delhi High Court as a Sole Arbitrator for adjudication of the disputes that have arisen between the parties in relation to the ‘Buyers Agreement’ dated 18.10.2012 executed between them. We leave it open for the parties to make their claims and counter claims in relation to the agreement aforementioned before the Arbitrator. All contentions otherwise open to the parties on facts and in law shall be open to be urged before the arbitrator. The arbitrator shall fix his own fee. The petition, is accordingly, allowed with the above directions leaving the parties to bear their own costs. Parties are directed to appear before the arbitrator on 14.09.2016.

……………………….CJI.

July 25, 2016