Case Note & Summary
The appellant, Shri Rama Krishna Kankonkar, filed an appeal under the Arbitration and Conciliation Act, 1996 against an order dated 01.10.2009 passed by the learned District Judge, North Goa, Panaji, in Civil Misc. Application No. 2/2009. The District Judge had dismissed the appellant's application under Section 9 of the Act on a preliminary objection raised by the respondents that there was no arbitration clause in the partnership agreement dated 16.11.1992. The short point for consideration in the appeal was whether an arbitration clause exists in the said agreement. Clause 14 of the partnership agreement provided that all differences arising between the partners or their representatives touching the partnership shall be referred to arbitration. The appellant argued that this clause constitutes a valid arbitration agreement, while the respondents contended otherwise. The High Court, after hearing both sides, held that Clause 14 clearly stipulates that all differences between the partners shall be referred to arbitration, and thus there is a valid arbitration clause. The court found that the learned District Judge had erred in dismissing the application on the preliminary objection. Consequently, the appeal was allowed, the impugned order was set aside, and the matter was remitted back to the District Judge for disposal of the application under Section 9 on merits in accordance with law.
Headnote
A) Arbitration Law - Existence of Arbitration Clause - Section 9 of Arbitration and Conciliation Act, 1996 - Clause 14 of partnership agreement dated 16.11.1992 stipulates that all differences between partners shall be referred to arbitration - The learned District Judge erred in dismissing the application under Section 9 on the ground that there was no arbitration clause - Held that Clause 14 constitutes a valid arbitration agreement and the appeal is allowed (Paras 3-5).
Issue of Consideration
Whether there exists an arbitration clause in the partnership agreement dated 16.11.1992.
Final Decision
Appeal allowed. Impugned order dated 01.10.2009 set aside. Matter remitted back to the learned District Judge for disposal of the application under Section 9 of the Arbitration and Conciliation Act, 1996 on merits in accordance with law.
Law Points
- Arbitration clause
- partnership agreement
- Section 9 of Arbitration and Conciliation Act
- 1996
- existence of arbitration agreement
- preliminary objection
