Case Note & Summary
The case involves two arbitration appeals and two interim applications arising from a dispute between purchasers (appellants) and a developer (respondent). The appellants had purchased units in a development project and entered into agreements with the developer. The developer had an arbitration agreement with the landowner. Disputes arose, and the appellants sought appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996. The learned District Judge appointed a sole arbitrator. The developer challenged this appointment, arguing that the appellants were not signatories to the arbitration agreement. The High Court examined the scope of Section 11(6) and the meaning of 'claiming through or under'. It held that the appellants, as purchasers, were claiming through the developer, who was a signatory to the arbitration agreement with the landowner. The court also noted that the agreements between the appellants and the developer contained arbitration clauses. Therefore, the appointment of the sole arbitrator was upheld. The appeals were dismissed, and the interim applications were disposed of.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11(6) Arbitration and Conciliation Act, 1996 - Non-Signatory Parties - The court considered whether non-signatory parties can be referred to arbitration under Section 11(6) when they claim through or under signatory parties. The court held that the expression 'claiming through or under' in Section 11(6) is wide enough to include non-signatory parties who are claiming through or under a signatory to the arbitration agreement. The court found that the appellants, being purchasers of units from the developer, were claiming through the developer who was a signatory to the arbitration agreement with the landowner. Therefore, the appointment of the sole arbitrator was valid. (Paras 1-10)
Issue of Consideration
Whether the court can appoint an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, when some of the parties are not signatories to the arbitration agreement but claim through or under the signatory parties.
Final Decision
The court dismissed the arbitration appeals and disposed of the interim applications, upholding the appointment of the sole arbitrator.
Law Points
- Section 11(6) of Arbitration and Conciliation Act
- 1996
- appointment of arbitrator
- non-signatory to arbitration agreement
- claiming through or under signatory
- prima facie existence of arbitration agreement
- referral to arbitration
