Case Note & Summary
The applicant, Yashvant Chunilal Mody, filed an application under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator to resolve disputes arising out of an alleged partnership firm. The applicant claimed to be one of eight partners of a firm formed on 1st April, 1974 for dairy farming. He alleged that a written partnership deed was executed on 24th September, 1975, which contained an arbitration clause. However, the applicant did not produce the original partnership deed or a legible copy. Instead, he relied on an unregistered conveyance deed dated 19th July, 1975, which was in the name of the partnership firm but did not contain any arbitration clause. The respondents, being the heirs of deceased partners and other partners, opposed the application, contending that there was no written arbitration agreement. The court examined the material on record and found that the applicant failed to establish the existence of a written arbitration agreement as required under Section 7 of the Act. The court noted that the partnership deed was not produced, and the conveyance deed did not contain an arbitration clause. Consequently, the court held that no arbitrator could be appointed under Section 11. The application was dismissed with no order as to costs.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11 of Arbitration and Conciliation Act, 1996 - Requirement of Written Arbitration Agreement - The applicant claimed existence of a partnership deed dated 24th September, 1975 containing an arbitration clause, but failed to produce the original or a legible copy. The court held that without a written arbitration agreement, no arbitrator can be appointed under Section 11. The application was dismissed as the alleged arbitration agreement was not proved. (Paras 1-10) B) Partnership Law - Existence of Partnership - Partnership Deed - The applicant alleged a partnership formed on 1st April, 1974 for dairy farming, but the only document produced was an unregistered conveyance in the firm's name. The court noted that the partnership deed itself was not produced, and the conveyance did not contain an arbitration clause. Hence, no arbitration agreement existed. (Paras 2-5)
Issue of Consideration
Whether there exists a valid arbitration agreement between the parties to warrant appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.
Final Decision
Application dismissed. No order as to costs.
Law Points
- Arbitration agreement must be in writing
- Section 7 of Arbitration and Conciliation Act
- 1996
- Existence of arbitration clause must be proved
- Section 11 application requires prima facie existence of arbitration agreement
