Case Note & Summary
The petitioner, Kirloskar Pneumatic Company Ltd, filed a petition under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of a Sole Arbitrator to adjudicate disputes with the respondent, Kataria Sales Corporation, arising out of a Dealership Agreement dated 19/06/2013. The petitioner is engaged in manufacturing and selling air and gas compressors and related services. Pursuant to the agreement, the respondent placed purchase orders, and the petitioner raised invoices for Rs. 14,86,932 on 27/03/2015 and Rs. 6,18,879 on another occasion. The respondent refused to pay the full amounts, leading to an exchange of emails and unresolved differences. On 30/10/2018, the petitioner invoked arbitration and appointed Advocate Anurag Jain as sole arbitrator, who passed an award on 23/11/2020 directing the respondent to pay Rs. 29,90,524 with interest at 18% per annum from 22/02/2019 and costs of Rs. 4,42,500 with interest at 12% per annum. The respondent challenged the award before the District Judge, Pune in Civil Miscellaneous Application No. 262 of 2021, which was pending. The court considered the existence of an arbitration clause in the agreement and the disputes between the parties. The court held that the petition was maintainable and appointed a Sole Arbitrator to adjudicate the disputes. The decision was in favor of the petitioner.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11 of Arbitration and Conciliation Act, 1996 - Existence of Arbitration Clause - The petition sought appointment of a Sole Arbitrator to resolve disputes under a Dealership Agreement containing an arbitration clause - The court found that disputes existed and the arbitration clause was valid - Held that the petition is allowed and a Sole Arbitrator is appointed (Paras 1-10).
Issue of Consideration
Whether a Sole Arbitrator should be appointed to adjudicate disputes between the parties arising out of the Dealership Agreement dated 19/06/2013.
Final Decision
The petition is allowed. A Sole Arbitrator is appointed to adjudicate the disputes between the parties arising out of the Dealership Agreement dated 19/06/2013.
Law Points
- Appointment of arbitrator under Section 11 of Arbitration and Conciliation Act
- 1996
- Existence of arbitration clause
- Dispute arising out of Dealership Agreement
Case Details
2024 LawText (BOM) (03) 50
Commercial Arbitration Petition No. 16 of 2023
Mr. Sunny Shah a/w. Devanshi Sethi i/b Hemant Sethi, for the Petitioner; Mr. Dormaan Dalal, for respondent
Kirloskar Pneumatic Company Ltd
Kataria Sales Corporation
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Nature of Litigation
Petition under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of Sole Arbitrator
Remedy Sought
Appointment of a Sole Arbitrator to adjudicate disputes between the parties
Filing Reason
Disputes arose out of a Dealership Agreement dated 19/06/2013 regarding unpaid invoices
Previous Decisions
An arbitral award dated 23/11/2020 was passed by a sole arbitrator in favor of the petitioner, which was challenged by the respondent before the District Judge, Pune in Civil Miscellaneous Application No. 262 of 2021
Issues
Whether a Sole Arbitrator should be appointed under Section 11 of the Arbitration and Conciliation Act, 1996 to resolve disputes arising from the Dealership Agreement dated 19/06/2013
Submissions/Arguments
Petitioner argued that disputes existed under the Dealership Agreement containing an arbitration clause and sought appointment of a Sole Arbitrator.
Respondent opposed the petition, but the court found the arbitration clause valid and disputes existed.
Ratio Decidendi
Where a valid arbitration clause exists and disputes have arisen between the parties, the court has the power under Section 11 of the Arbitration and Conciliation Act, 1996 to appoint an arbitrator to resolve the disputes.
Judgment Excerpts
The arbitration petition filed by the Kirloskar Pneumatic Company Ltd, seek relief of appointment of Sole Arbitrator to adjudicate the disputes with the respondent Kataria Sales Corporation, out of the Dealership Agreement dated 19/06/2013.
Procedural History
The petitioner invoked arbitration on 30/10/2018 and appointed Advocate Anurag Jain as sole arbitrator, who passed an award on 23/11/2020. The respondent challenged the award before the District Judge, Pune in Civil Miscellaneous Application No. 262 of 2021, which was pending. The petitioner then filed the present petition under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of a Sole Arbitrator.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 11
