Whether counter claim is to be dismissed if arbitration proceeding is dismissed?
11667, this Court reiterated that the Arbitrator will have jurisdiction to
entertain any Counter Claim, even though it was not raised at a stage earlier
to the stage of pleading before the Arbitrator.
8. Section 32(2)(a) of the Act further provides that the Arbitral Tribunal
may order termination of the arbitral proceedings where the Claimant
withdraws his claim, unless the respondent objects to the order of the
Arbitral Tribunal and the Arbitral Tribunal recognises a legitimate interest
on his part in obtaining a final settlement of the dispute.
9. A Counter Claim by its very nature is an independent claim raised by
the respondent in the arbitration proceedings and even where the claim is to
be dismissed for non-prosecution, the proceedings must continue with
respect to the Counter Claim.
10. In General Exports and Credits Ltd. v. Aditya Birla Finance Ltd.,
2014 SCC OnLine Del 2009, this Court has held that:-
“21…….in case the statement of claim is not filed then the learned
arbitrator would terminate the proceedings via-a-vis the statement of
claim. It would not follow thus, that the proceedings qua the counter
claim, which the respondent may have filed before the learned
arbitrator, shall also stand dissolved.”
IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 6th April, 2018
O.M.P. (COMM) 319/2016
UNION OF INDIA Vs ARUN KUMAR GUPTA
CORAM:
HON'BLE MR. JUSTICE NAVIN CHAWLA
https://www.lawweb.in/2018/04/whether-counter-claim-is-to-be.html
