Case Note & Summary
The dispute arose between two companies regarding the execution of a Services Agreement dated July 15, 2006, where the applicant was to provide services to the respondent for a monthly payment. The applicant claimed that the respondent failed to make payments since December 2006 and insisted on a new agreement, leading the applicant to terminate the existing agreement and seek arbitration. The respondent contended that the Services Agreement was part of a Tripartite Share Purchase Agreement that had automatically terminated due to non-fulfillment of conditions. The court analyzed the existence of the Services Agreement and the implications of the Tripartite Share Purchase Agreement. It concluded that the Services Agreement remained valid and enforceable, allowing the applicant to invoke the arbitration clause. The court appointed a retired judge as the sole arbitrator and directed the resolution of disputes in accordance with law, with no order as to costs.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Existence of Arbitration Agreement - Arbitration and Conciliation Act, 1996, Section 11(6) - The court held that the applicant was entitled to invoke the arbitration clause in the Services Agreement dated July 15, 2006, as it had not ceased to exist despite the respondent's claims regarding the termination of the Tripartite Share Purchase Agreement. The court appointed Mr. Justice Arvind Sawant (Retd.) as the sole arbitrator to resolve the disputes arising from the Services Agreement (Paras 12-13).
Issue of Consideration
Whether the applicant is entitled to invoke the arbitration clause in the Services Agreement dated July 15, 2006.
Final Decision
The application was accepted, and Mr. Justice Arvind Sawant (Retd.) was appointed as the sole arbitrator to resolve the disputes arising from the Services Agreement dated July 15, 2006.
Law Points
- Arbitration agreement existence
- Judicial power under Section 11(6)
- Services Agreement execution
- Tripartite Share Purchase Agreement termination
- Arbitration clause invocation
