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2025 DAILYLAW 27419 (DEL)

M/S ACTECH INFORMATION SYSTEM LTD v. SMALL FARMERS AGRIBUSINESS CONSORTIUM (SFAC)

ARB.P./1229/2025 · 2025-09-10

Jyoti Singh

Writ Petition (Civil)body2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

ARB.P. 1229/2025 $~7 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ARB.P. 1229/2025 M/S ACTECH INFORMATION SYSTEM LTD .....Petitioner Through: Ms. Kirti Mewar, Advocate. versus SMALL FARMERS AGRIBUSINESS CONSORTIUM (SFAC) .....Respondent Through: Mr. Anmol Panwar, Mr. J P Nahar and Ms. Tanvi Jain, Advocates. CORAM: HON'BLE MS. JUSTICE JYOTI SINGH O R D E R % 10.09.2025 1. This petition is filed on behalf of the Petitioner under Section 11(6) of Arbitration and Conciliation Act, 1996 (‘1996 Act’) seeking appointment of the Sole Arbitrator. 2. It is the case of the Petitioner that it was empanelled by the Respondent as a Cluster Based Business Organization (‘CBBO’) for formation and promotion of Farmer Producers Organization (‘FPO’) under the Central Sector Scheme. Respondent granted 15 FPOs in UP, 5 FPOs in Punjab and 12 FPOs in Jammu and Kashmir to the Petitioner through various Work Orders between 2021 and 2024. Disputes arose between the parties when Respondent received anonymous complaints on 22.04.2024 and 07.10.2024 alleging misuse of Government fund by the Petitioner. Despite the Petitioner providing detailed response to the allegations, denying them, Respondent terminated Petitioner’s services vide order dated This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/09/2025 at 12:31:10 ARB.P. 1229/2025 25.02.2025 and directed it to refund Rs.2,42,31,250/- paid as CBBO cost and blacklisted the Petitioner. 3. It is averred that Petitioner filed W.P.(C) No. 3103/2025 in this Court challenging the blacklisting order, which was disposed of on 11.03.2025 staying the blacklisting order and giving liberty to the Petitioner to avail his contractual remedies. Petitioner raised tentative claims and invoked arbitration in light of arbitration clause 9.1 of the Work Orders by sending a notice dated 24.07.2025 to the Respondent and calling upon the Respondent to consent to the name of the Arbitrator proposed in the notice, however, there was no response to the notice. 4. Mr. Anmol Panwar, learned counsel, enters appearance on behalf of the Respondent and while refuting the case of the Petitioner on merits, on instructions, submits that Respondent has no objection to the appointment of the Sole Arbitrator. 5. Learned counsels for the parties jointly propose the name of Dr. Justice S. Muralidhar, former Chief Justice of Orrisa High Court as a Sole Arbitrator. 6. Accordingly, Dr. Justice S. Muralidhar, former Chief Justice of Orrisa High Court (Mobile No. 9872727986) is appointed as Sole Arbitrator to adjudicate the disputes between the parties. Arbitral proceedings will be held under the aegis of Delhi International Arbitration Centre (‘DIAC’). Fee of the Arbitrator shall be fixed as per fee schedule under DIAC (Administrative Cost & Arbitrators’ Fees) Rules 2018. 7. Learned Arbitrator shall give disclosure under Section 12 of the 1996 Act before entering upon reference. 8. It is made clear that this Court has not expressed any opinion on the This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/09/2025 at 12:31:10 ARB.P. 1229/2025 merits of the case and all rights and contentions of the parties are left open. 9. Petition is disposed of in the aforesaid terms. JYOTI SINGH, J SEPTEMBER 10, 2025 Ch This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/09/2025 at 12:31:10