Case Note & Summary
The petitioners, Sri. S. Shivakumar and Smt. H. Girija, partners of M/S SGH Rural Godown, filed a Civil Miscellaneous Petition under Section 11(5) of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator to adjudicate disputes arising from the partnership deed dated 10/03/2008 and the reconstitution deed. The respondents included the partnership firm and its other partners, Smt. Sunanda and Sri. G.H. Krishnamurthy. The petitioners alleged that disputes had arisen among the partners regarding the management and affairs of the firm, and despite invoking the arbitration clause, the respondents failed to appoint an arbitrator. The court heard the matter and reserved orders on 05.02.2025. The court examined the existence of an arbitration agreement in the partnership deed and found that the respondents had not appointed an arbitrator despite notice. The court held that the conditions for appointment under Section 11(5) were satisfied and appointed Sri. Justice A.V. Chandrashekar (Retd.), a former Judge of the High Court of Karnataka, as the sole arbitrator to resolve the disputes. The court directed the arbitrator to enter upon reference and adjudicate the disputes in accordance with law, with the parties bearing their own costs.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11(5) of the Arbitration and Conciliation Act, 1996 - Partnership Dispute - Petitioners sought appointment of sole arbitrator to resolve disputes under partnership deed dated 10/03/2008 and reconstitution deed - Respondents failed to appoint arbitrator despite notice - Court held that existence of arbitration clause and failure of respondents to appoint arbitrator justifies appointment by court - Appointed Sri. Justice A.V. Chandrashekar (Retd.) as sole arbitrator (Paras 1-5).
Issue of Consideration
Whether a sole arbitrator should be appointed under Section 11(5) of the Arbitration and Conciliation Act, 1996 to adjudicate disputes arising from the partnership deed dated 10/03/2008 and reconstitution deed.
Final Decision
The court allowed the petition and appointed Sri. Justice A.V. Chandrashekar (Retd.), former Judge of the High Court of Karnataka, as the sole arbitrator to adjudicate the disputes between the parties. The arbitrator was directed to enter upon reference and adjudicate the disputes in accordance with law. Parties to bear their own costs.
Law Points
- Section 11(5) of the Arbitration and Conciliation Act
- 1996 empowers the High Court to appoint an arbitrator when parties fail to agree on appointment procedure
- Existence of arbitration clause in partnership deed is sufficient to invoke Section 11
- Court's role under Section 11 is prima facie examination of existence of arbitration agreement
