Bombay High Court Allows Appointment of Arbitrator Under Section 11 of Arbitration Act for Disputes Arising from Agreements Containing Arbitration Clause. Court Appoints Sole Arbitrator to Adjudicate Disputes Between Parties.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioner, Hyund Construction Equipment India Pvt. Ltd., filed a petition under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator to resolve disputes arising from two agreements dated 15.06.2015 and 01.07.2015 entered into with the respondents, M/s. Saumya Mining Limited and M/s. Saumya Infraventure Pvt. Ltd. The agreements contained an arbitration clause. The respondents did not appear despite service of notice. The court, presided over by Dr. Neela Gokhale J., considered the petition and found that the agreements existed and contained an arbitration clause. The court held that the petitioner had made out a case for appointment of an arbitrator. Accordingly, the court appointed a sole arbitrator, Justice (Retd.) S. J. Kathawala, to adjudicate the disputes between the parties. The arbitrator was directed to decide the disputes in accordance with law, and the parties were directed to appear before the arbitrator on a specified date.

Headnote

A) Arbitration Law - Appointment of Arbitrator - Section 11 of the Arbitration and Conciliation Act, 1996 - Existence of Arbitration Clause - The petitioner sought appointment of an arbitrator to resolve disputes arising from agreements dated 15.06.2015 and 01.07.2015, which contained an arbitration clause. The court, after noting that the respondents did not appear despite service, found that the agreements existed and contained an arbitration clause. The court appointed a sole arbitrator to adjudicate the disputes. (Paras 1-3)

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Issue of Consideration

Whether an arbitrator should be appointed under Section 11 of the Arbitration and Conciliation Act, 1996, given the existence of an arbitration clause in the agreements between the parties.

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Final Decision

The court allowed the petition and appointed Justice (Retd.) S. J. Kathawala as the sole arbitrator to adjudicate the disputes between the parties. The arbitrator was directed to decide the disputes in accordance with law, and the parties were directed to appear before the arbitrator on 12.02.2024 at 11:00 a.m.

Law Points

  • Section 11 of the Arbitration and Conciliation Act
  • 1996
  • Appointment of Arbitrator
  • Existence of Arbitration Agreement
  • Prima Facie Satisfaction
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Case Details

2024 LawText (BOM) (01) 138

Arbitration Petition No. 32 of 2022

2024-01-11

Dr. Neela Gokhale J.

2024:BHC-AS:1152

Mr. Nilesh M Wable for Petitioner; None for Respondents

Hyund Construction Equipment India Pvt. Ltd.

M/s. Saumya Mining Limited and M/s. Saumya Infraventure Pvt. Ltd.

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Nature of Litigation

Petition under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of an arbitrator.

Remedy Sought

Appointment of an arbitrator to resolve disputes arising from agreements dated 15.06.2015 and 01.07.2015.

Filing Reason

Disputes arose between the parties out of agreements containing an arbitration clause.

Issues

Whether an arbitrator should be appointed under Section 11 of the Arbitration and Conciliation Act, 1996.

Submissions/Arguments

Petitioner submitted that agreements existed and contained an arbitration clause, and disputes had arisen. Respondents did not appear despite service.

Ratio Decidendi

Where an agreement contains an arbitration clause and disputes arise between the parties, the court may appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, upon being satisfied that the arbitration agreement exists.

Judgment Excerpts

The petition seeks appointment of an arbitrator under Section 11 of the Arbitration & Conciliation Act, 1996 to decide the dispute that has arisen between the parties out of agreements dated 15.06.2015 and 01.07.2015. The agreements contain an arbitration clause. The petitioner has made out a case for appointment of an arbitrator.

Procedural History

The petition was filed on an unspecified date. It was reserved on 09.01.2024 and pronounced on 11.01.2024. The respondents were served but did not appear.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: Section 11
  • Companies Act, 1956:
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High Court Bombay High Court Allows Appointment of Arbitrator Under Section 11 of Arbitration Act for Disputes Arising from Agreements Containing Arbitration Clause. Court Appoints Sole Arbitrator to Adjudicate Disputes Between Parties.