Case Note & Summary
The case involves an application under Section 11(6) of the Arbitration and Conciliation Act, 1996, filed by Mrs. Perin Hoshang Davierwalla and another (applicants) against Mr. Kobad Dorabji Davierwalla and others (respondents). The parties are partners in a partnership business running IL PALAZZO HOTEL, governed by a Partnership Deed dated 06.03.1992. The deed contains an arbitration clause (Clause 29) which states that all disputes and differences shall be referred to 'arbitrators' (plural) 'one to be appointed by each party to the difference'. The applicants sought dissolution of the partnership and gave notice of dissolution. They then invoked the arbitration clause and sought appointment of a sole arbitrator. The respondents opposed, contending that the clause requires multiple arbitrators. The court analyzed the language of the arbitration clause and held that the use of the plural 'arbitrators' and the phrase 'one by each party' clearly indicates that the parties intended to have multiple arbitrators, not a sole arbitrator. The court noted that there are multiple parties with separate sets of disputes, and the clause contemplates each party appointing one arbitrator. Consequently, the application for appointment of a sole arbitrator was dismissed, as it was not in accordance with the arbitration agreement.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11(6) Arbitration and Conciliation Act, 1996 - Interpretation of Arbitration Clause - The arbitration clause in a partnership deed used the word 'arbitrators' in plural and stated 'one to be appointed by each party to the difference'. The court held that this clearly contemplates multiple arbitrators, not a sole arbitrator. The applicants' request for appointment of a sole arbitrator was rejected as contrary to the agreement. (Paras 1-6)
Issue of Consideration
Whether the court can appoint a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 when the arbitration clause provides for appointment of arbitrators (plural) with each party appointing one arbitrator.
Final Decision
The application for appointment of a sole arbitrator is dismissed. The court held that the arbitration clause clearly contemplates multiple arbitrators, not a sole arbitrator.
Law Points
- Arbitration clause interpretation
- Appointment of arbitrator under Section 11(6)
- Multiparty arbitration agreement
- Plural reference to arbitrators
