Whether counter claim is to be dismissed if arbitration proceeding is dismissed?
In Jakki Mull & Sons v. Jagdish Thakral, 2017 SCC OnLine Del 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