THE DELHI INTERNATIONAL ARBITRATION CENTER (DIAC)

GROUND, 6TH, 7TH FLOOR & 8TH C.G.O. COMPLEX, LODHI

RD, BLOCK NO. 3, SIRI, INDO 110003
VOLUME I

Pleadings and documents filed by the Claimant

INDEX

S. NO. PARTICULARS PAGE NO.

1. Statement of Claim 1-
(Filed on _______)
2. Documents along
with the Statement of
Claim
3. Vakalatnama
 BEFORE THE LD. ARBITRATORS
THE DELHI INTERNATIONAL ARBITRATION CENTER (DIAC)
GROUND, 6TH, 7TH FLOOR & 8TH C.G.O. COMPLEX, LODHI
RD, BLOCK NO. 3, SIRI, INDO 110003
IN THE MATTER OF ARBITRATION BETWEEN :
Palladium Club …Claimant
And
Hershel Gibbons Properties …Respondent
INDEX
SL. PARTICULARS PAGE
NO. NO.
1. Statement of Claim along with brief list of date on 1-
behalf of the Claimant and with the supporting
Affidavit
2.

LIST OF DOCUMENTS

S. NO. PARTICULARS PAGE NO.

1.

CLAIMANT

(Through Authorised Representative)

Through:

Rohit Patel

Sector 45, House No. KYZ,

Date: Gurugram, Haryana – 122003

Place: +91 2011456726

 BRIEF LIST OF DATES AND EVENTS

1929 – Palladium club came into existence. Club was

formed for the mutual benefit of the members. It was formed as not
for profit and non-commercial.

January 2018 – Mr. Sandeep Chaitanya, the Joint Secretary of

Palladium Club and the owner of the cement company named
Dharma Cements Pvt. Ltd. (herein referred as Dharma Cements),
during his frequent business visits to Hoong Keang, met the CEO of
the Hershel Gibbons Properties (herein referred as HG Properties),
i.e. Mr. Andy Goffin at a networking event. They discussed HG
Properties’ zeal to ender the Indo’s real estate market.

29-01-18 - The office bearers of the Club met Mr. Andy Goffin
on the said date and discussed the Project with the various
commercials associated with it. The office bearers were pleased with
the assurance and pitch given by Mr. Andy pertaining to the quality
and the time frame within which the Project will be completed. The
club informed Mr. Andy about their plan to celebrate their century
celebration on 10-02-2019 and was hoping to do the same in the ball
room hall of the new building which was as the part of the Project.
They also informed about opening the gate to 100 members after 5
years into the club who will be exclusively using the new premises.

30-01-18 - Mr. Rohit Patel, a lawyer hired by the Club and in

house legal counsel of HG Properties, Mr. Roger Hopkin met on the
said date and signed a Development Agreement. The main issue of
concern was the dispute resolution. Mr. Rohit suggested that the
arbitration be China International Economic and Trade Arbitration
Commission (herein referred to as CIETAC) administered at the
venue being Siri, Indo. Both the parties agreed to the suggestion. He
also stated to procure the cement from Dharma Cements and
Palladium Club consents the same.

01-02-2018 - Development Agreement was signed between Club

and HG Properties. The Project was scheduled to be completed by
05-01-2019. Total consideration of Rupees120 crores will be paid in
4 equal installments. Time was of essence of the contract.
05-06-2018 - HG Properties requested total of 5000 bags from
Dharma Cements to be delivered in three installments.

i. 1500 bags on 05-02-2018

ii. 1500 bags on 05-04-2018
iii. 2000 bags on 05-06-2018

HG Properties signed one-page Purchase

Agreement with Dharma Cements which prescribed the time
schedule for the delivery of cement, quality, price, and reference that
cement will be used for the Project. HG Properties had the liberty to
check the quality of the cement, and return it within a week of its
issues respect to the quality. This agreement also contained an
arbitration clause that is analogous to the Development Agreement.

05-02-2018 - HG Properties commenced its work after receiving

Rupees 30 crores as the first installment of consideration, and was
proceeding as per the schedule. Dharma cements supplied 1500
bags on the said date as mandated under the Purchase Agreement.

10-02-2018 - The cement bags were returned on the date

mentioned here due to the inferior quality of the cement along with
an email that also stated that the cement was not compatible for this
Project. HG Properties further specified the quality and composition
of the cement and asked Dharma Cements to supply the same as
early as possible. This gave a decline in the business of Dharma
Cements.

05-04-2018 - Dharma Cements was able to only provide 500 bags

of the cement. It also requested HG Properties to provide further time
to deliver the rest.

05-06-2018 - Dharma Cements supplied an additional 750 bags

of the cement. HG Properties hence was lagging behind their target
that they had aimed for June 2018.

10-07-2018 - HG Properties sent an email to Dharma Cements

for remaining set of cement bags and if they failed, HG Properties will
be constrained to opt for an alternative supplier to procure the
required cement. Dharma Cements requested for some more time.

25-07-2018 - Dharma Cements moved to High Court of Delhi

under section 9 of the Arbitration and Conciliation Act, 1996 against
HG Properties to restraining them from purchasing cement from any
other supplier citing the exclusivity clause in the Development
Agreement. The said application came for admission on stated date
and High Court of Delhi issued a notice to the HG Properties.

27-08-2018 - HG Properties appeared before the High Court of

Delhi and filed its counter. The roaster of judges changed in the
subsequent month and the matter was not listed thereafter. In the
meanwhile HG Properties terminated the agreement with Dharma
Cements and procured 500 bags of cement from a different supplier.

05-01-19 - The project was 70% remaining inspite of HG

Properties providing Dharma Properties with Rupees 60 crores. HG
Properties sent an email to the Club seeking extension of 10 months
to complete the Project. The issue became big when a local
newspaper published about the debacle in relation with the Project
and made it reach the public eye.

10-01-2019 - The Club sent a letter to HG Properties on the said

date terminating the Development Agreement with immediate effect
claiming back the entire payment of Rupees 90 crores including
damages of Rupees 10 crores as under the Development Agreement.
Club engaged the services of another Indo developer Durg Estates
Pvt. Ltd. to complete the rest of the Project.

25-01-2018 - HG Properties replied through a letter of the said

date, claiming that they are neither bound to refund the payments
made by the Club, nor liable for any damages. They also insisted on
completing the Project by revoking of the termination of the
Development Agreement.

20-02-2019 - The Club requested an arbitration against HG

Properties with Statement of Claim to China International Economic
and Trade Arbitration Commission (CIETAC) on the said date. The
Club nominated Mr. Sandeep Ranchod, a Senior Advocate at the
Supreme Court of Indo as an Arbitrator.

05-03-2019 - HG Properties filed Statement of Defence on the

said date and nominated Mr. Dave Woakes, a Partner at Enfields’s
law firm, Hoong Keang as its Arbitrator.

10-03-2019 - Both the parties nominated Ms. Catherine Lancy, a

Professor and Arbitrator at BPL University, London on the said date
as the Presiding Arbitrator. All the three arbitrators declared that
they have no conflict of interest to proceed the arbitration. CIETAC
accordingly confirmed the nomination of all the three of them.

15-03-2019 - HG Properties submitted a request to initiate

arbitration against Dharma Cements along with the Statement of
Claims that the failure to supply the cement bags as per the
Purchase Agreement was resulting in delay of the Project. CIETAC
accepted the same request.

22-03-2019 - The Club, getting to know about the second

arbitration against Dharma Cements, requested CIETAC to
consolidate both the arbitrations as they are intrinsically connected.
Both Dharma Cements and HG Properties consented for
consolidation of both the arbitrations. CIETAC ordered the requested
consolidation of arbitrations.

01-04-2019 - Dharma cements subsequently filed its Statement

of Defense on the said date denying HG Properties’ allegations and
further stated that the delay was due to the demand of fresh supply
of cement with different composition by HG Properties. Dharma
cements alleged that it also suffered great financial loss because of
the same and reserves a right to Counter Claim after ascertaining
the actual damages.

05-04-2019 - Mr. Sarangdeep Ranchod disclosed in writing that

he was engaged as a Counsel to appear against Dharma Cements
before the National Company Law Tribunal, Siri in two unrelated
cases last year. All the parties expressly waived their right to
challenge him and to continue as an arbitrator.

15-04-2019 - CIETAC removed Mr. Sarangdeep Ranchod without

stating any reasons and requested the Club to nominate a substitute
arbitrator.

25-04-2019 - The Club replied through an email that the removal

of Mr. Sarangdeep Ranchod was unnecessary and against the party
autonomy.

05-05-2019 - CIETAC appointed Mr. Derek Wei, Partner at DW

Law Chambers, Singapore as the substitute arbitrator.

20-05-2019 - The Club filed an application challenging the

appointment of Mr. Derek Wei.
20-06-2019 - HG Properties filed an interim application on the
said date before the arbitral tribunal stating that an application filed
by an Operational Creditor under section 9 of the Insolvency and
Bankruptcy Code was admitted by the National Company Law
Tribunal, Siri, Indo on 16-06-2019 and the NCLT has accordingly
initiated the insolvency process against Dharma Cements. HG
Properties sought for a stay on consolidated arbitration proceedings
pending moratorium of Dharma Cements.

30-06-2019 - The Club filed its reply against the said interim
application stating that there is no bar to proceed with the
arbitration between the Club and HG Properties pending moratorium
of Dharma Cements.

20-08-2019 - A conference call of Counsels of the Club and HG

Properties was held on the said date. Dharma Cements was absent
and hence it was set ex-parte by Tribunal due to its failure to appear
in arbitration proceedings despite several email communications
from the Tribunal.

09-11-2019 - Due to conflicting calendar, the oral hearing is

scheduled to be held on the said date. The Tribunal issued a
Procedural Order to be followed.
 BEFORE THE LD. DAVE WOAKES, CATHERINE LANCY, AND
DEREK WEI ARBITRATORS

THE DELHI INTERNATIONAL ARBITRATION CENTER (DIAC)

GROUND, 6TH, 7TH FLOOR & 8TH C.G.O. COMPLEX, LODHI

RD, BLOCK NO. 3, SIRI, INDO 110003

IN THE MATTER OF ARBITRATION BETWEEN:

Palladium Club …Claimant

And

Hershel Gibbons Properties …Respondent

Arising out of:

Purchase agreement/development agreement

STATEMENT ON BEHALF OF THE CLAIMANT:

Most Respectfully Sheweth:

1. The Claimant here, that is, Palladium Club is one of the

oldest social clubs in Siri, the capital of Indo. It is a not for
profit and non-commercial organization incorporated under
section 8(old section 25) of the Companies Act, 2013. In the
recent times the head count of the members was increasing
and it was becoming difficult for the Claimant to cater to their
needs. The club passed a resolution unanimously on the date
10th January, 2018 to construct an Annex building within the
premises of the club which would include 2 restaurants, 4
badminton courts, 4 squash courts, a ball room, gymnasium
and stay facilities, herein referred as the ‘Project’. The
estimated amount of money for the construction of the Project
was around Rupees 100 Crores.
2. Hershel Gibbons Properties is an internationally
renowned real estate conglomerate. The HG Properties created
some of the world’s most iconic, large scale modern integrated
projects and is renowned for its expertise in understanding
 precise quality of raw materials and timely delivery of their
Projects. The CEO of HG Properties - Mr. Andy Goffin. The
company made a beeline to ender the Indo market. The
Claimant and Mr. Andy met at a networking event in Hoong
Keang in January of 2018. Mr. Sandeep decided to discuss the
project with HG Properties as he knew about their zeal to enter
the Indo market.
3. The office bearers of the Club met with Mr. Andy Goffin
on 29-01-2018 and they discussed the Project with the
respondent(HG Properties CEO – Mr. Andy Goffin). The office
bearers were pleased with the assurance and pitch given by
Mr. Andy pertaining to the quality and the time frame within
which the Project will be completed. The club informed Mr.
Andy about their plan to celebrate their century celebration on
10-02-2019 and was hoping to do the same in the ball room
hall of the new building which was as the part of the Project.
They also informed about opening the gate to 100 members
after 5 years into the club who will be exclusively using the
new premises.
4. The Claimant hired a lawyer, Mr. Rohit Patel and Mr.
Rohit met with Mr. Roger Hopkins, the in-house counsel of HG
Properties on the date 30-01-2018. They discussed the
Development Agreement which mainly concerned Mr. Rohit
with the Clause:

“Any dispute arising from or in connection with this contract

shall be submitted to China International Economic and Trade
Arbitration Commission(CIETAC), Hoong Keang Arbitration
Center for Arbitration which shall be conducted in accordance
with the CIETAC’s arbitration rules in effect at the time of
applying for arbitration. The seat of arbitration and venue of oral
hearing shall be Hoong Keang. The number of Arbitrators shall
be three. The arbitration proceeding shall be conducted in
English.”

5. The said clause was not agreed upon by the counsel for
the Claimant instead the counsel suggested a CIETAC
administrative arbitration with the seat and venue being Siri,
Indo. Both the parties agreed to the suggestion stated herein.
6. It was further referred to a clause which specified that:
 “the cement for the project shall be procured only from Dharma
Cements and Palladium Club hereby consents to the same and
shall waive conflicts if any”.
7. The respondent signed a Development Agreement with
the Claimant on 01-02-2018. The Project was scheduled to be
completed by 05-01-2019 and it was agreed that the total
consideration of Rupees 120 Crores would be paid in four
equal installments. It was further agreed that time was of
essence of contract. The respondent promised timely delivery
of the Project.
8. HG Properties requested 5000 bags of cement from
Dharma Cements. Those bags were to be delivered in 3
installments:
i. 1500 bags on 05-02-2018
ii. 1500 bags on 05-04-2018
iii. 2000 bags on 05-06-2018
9. HG Properties commenced its work in the Project
immediately after receiving Rupees 30 crores being the first
installment of consideration and of proceeding with it as per
schedule.
10. Meanwhile, due to the issues with Dharma Cements, the
respondent terminated its Purchase Agreements with Dharma
Cements and procured 500 bags of cement from a different
supplier to continue the work on the Project.
11. By the date 05-01-2019, the Project was hardly near
completion. The Project was left with more than 70% of the
work to be done within in the said time period as per the
agreement.
12. Respondent had received the amount of Rupees 60 crores
from the Claimant for the further consideration. Yet the
respondent was not able to deliver the promised result.
13. The respondent sent an email to the Claimant asking for
extension of the time period up to 10 months to complete the
Project.
14. The Claimant had already received the payments for
memberships from 100 applicants and was apprehensive that
they might face some problems due to the delay in completion
of the Project. The Claimant had to face the loss of reputation
and trust of the members of the Club as the members
terminated their applications and took refunds of the
membership for which they had paid to the Club.
 15. The issue was brought to public eye when a local
newspaper had published about this debacle very elaborately
in their newspaper and the Club faced decreased respect and
reputation in the market. The Club was not at the risk of losing
100 years of name and worth and other permanent clients by
this news becoming a public news.
16. The Club claims the termination of the Development
Agreement and also claims the payment of Rupees 90 crores
with the payment for the damages that it has faced to the tune
of Rupees 10 crores as was stipulated under the Development
Agreement.
17. The Club had to engage another company which is ‘Durg
Estates Pvt. Ltd.’ for the completion of the Project to protect
the further damage and the loss of time and money on their
Project, for re-engaging and compensating their clients who
terminated their membership. The Club on 30-06-2019 filed
its reply against the said interim application stating that there
is no bar to proceed with arbitration between the Club and HG
Properties pending moratorium of Dharma Cements.
The Parties
1. Palladium club came into existence. Club was formed for
the mutual benefit of the members. It was formed as not for
profit and non-commercial. The Club is located in the heart of
Siri, Indo. It has excellent dining and entertainment facilities,
an excellent library, three restro-bars, six tennis courts, a 50m
swimming pool, a gymnasium, a walking track and a golf
course.
2. Hershel Gibbons Properties is an internationally
renowned real estate conglomerate. The HG Properties
created some of the world’s most iconic, large scale modern
integrated projects and is renowned for its expertise in
understanding precise quality of raw materials and timely
delivery of their Projects. The CEO of HG Properties - Mr.
Andy Goffin. The company made a beeline to ender the Indo
market. The Claimant and Mr. Andy met at a networking
event in Hoong Keang in January of 2018. Mr. Sandeep
decided to discuss the project with HG Properties as he knew
about their zeal to enter the Indo market.
Relevant clauses of the Development Agreement/ Purchase
Agreement
Clause From Development Agreement:
“Any dispute arising from or in connection with this contract
shall be submitted to China International Economic and Trade
Arbitration Commission(CIETAC), Hoong Keang Arbitration
Center for Arbitration which shall be conducted in accordance
with the CIETAC’s arbitration rules in effect at the time of
applying for arbitration. The seat of arbitration and venue of
oral hearing shall be Hoong Keang. The number of Arbitrators
shall be three. The arbitration proceeding shall be conducted in
English.” …
… “the cement for the project shall be procured only from
Dharma Cements and Palladium Club hereby consents to the
same and shall waive conflicts if any”.
19. Hence, the claimant has the claims that are further
mentioned in the Prayer.

PRAYER

It is therefore, most respectfully prayed that in view of the facts

and circumstances stated hereinabove, the Ld. Arbitrators may be
pleased to:

(a) HG Properties has breached the Development Agreement by

significantly delaying the Project, thus it should be fined for
the same.

(b) Claimant wishes the Development Agreement remains

terminated, for prevention of further damages of time and
money.

(c) Respondent is liable to refund the consideration amount of

Rupees 90 crores that was paid by the claimant and is also
liable to pay damages of Rupees 10 crores.
 (d) Respondent shall further be liable to pay the costs of
arbitration, expenses for legal representation, and any other
payments that the Tribunal may so order;

(e) Pass such other or further order/orders as the Ld. Arbitrators

may deem fit and proper in the facts and the circumstances of
the case.

CLAIMANT

(Through Authorised Representative)

Through:

Rohit Patel

Sector 45, House No. KYZ,

Date: Gurugram, Haryana – 122003

Place: +91 2011456726

 THE DELHI INTERNATIONAL ARBITRATION CENTER (DIAC)

GROUND, 6TH, 7TH FLOOR & 8TH C.G.O. COMPLEX, LODHI

RD, BLOCK NO. 3, SIRI, INDO 110003

IN THE MATTER OF ARBITRATION BETWEEN:

Palladium Club …Claimant

And

Hershel Gibbons Properties …Respondent

AFFIDAVIT

I, Rohit Patel, son of Mr. Anil Malik, aged about 23 years, Sector 45,
House No. KYZ, Gurugram, Haryana – 122003 presently at
Gurugram, do hereby solemnly affirm and state as under:

1. That I am Rohit Patel, the authorized representative of the

Claimant Company and have been authorized vide Board
Resolution dated ____________ to file the present Statement of
Claim on behalf of the Claimant being conversant with the facts
of the case.
2. That I am sufficiently conversant with the facts of the case and
have also examined all relevant documents and records in
relation thereto.
3. I say that the facts stated in the accompanying statement of
Claim of the Claimant are true and correct.
4. I say that the contents of the Statement of Claim are not
reproduced herein to avoid prolixity and the same be treated
as part and parcel of the present affidavit.
5. I say that I am aware that for any false statement or
concealment, I shall be liable for action taken against me under
the law.

DEPONENT
VERIFICATION

I, the above-named deponent do hereby verify that the contents of

my above affidavit are true and correct, no part of it is false and
nothing has been concealed there from.

Verified at Gurugram, on this _(date)_ day of _(month)_, _(year)_.

DEPONENT
THE DELHI INTERNATIONAL ARBITRATION CENTER (DIAC)

GROUND, 6TH, 7TH FLOOR & 8TH C.G.O. COMPLEX, LODHI

RD, BLOCK NO. 3, SIRI, INDO 110003

Appellant(s)/Petitioner(s)

VERSUS

Respondent(s
)

VAKALATNAMA

I/We

Appellants(s)/Petitioner(s)/Respondent(s) /Opposite party in the above Suit/

Appeal:

Petition/ Reference do hereby appoint and retain SHRI

, Advocate to act and appear for me/us in the above Suit/ Appeal/ Petition/

Reference / LPA and or my /our behalf to conduct and prosecute (or defend)

the same and all proceedings that may be taken in respect of my application

connected with the same of any decree order passed therein, including

proceedings in taxation and application for Review, to file and obtain return

of documents, and to deposit and receive money on my/ or behalf in the said

Suit Appeal/ Petition Reference / LPA and in application of Review, and to

represent me/us and to take all necessary steps on my /our behalf in the above

matter, I/We agree to ratify all acts done by the aforesaid Advocate in

pursuance of this authority.

Dated this the day of 20

Accepted & identified

( ) Client
Advocate