Case Note & Summary
The petitioner, M/s Heritage Lifestyle & Developers Ltd., filed an arbitration petition under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator to resolve disputes with the respondent, M/s Cool Breeze Co-operative Housing Society Limited and its flat owners. The petitioner claimed that there was an oral agreement for redevelopment of the society's building, and that the share certificate issued by the society contained an arbitration clause. The respondents opposed the petition, arguing that there was no arbitration agreement between the parties. The court examined the share certificate and found that it was not an agreement between the petitioner and the respondents, but rather a document between the society and its members. The court also noted that the alleged oral agreement was not supported by any evidence. The court held that for an arbitration agreement to exist, it must be in writing and must be between the parties to the dispute. Since the petitioner failed to establish any such agreement, the petition was dismissed. The court also observed that the dispute raised by the petitioner did not arise out of or in relation to any agreement containing an arbitration clause. Therefore, the petition was dismissed with no order as to costs.
Headnote
A) Arbitration Law - Existence of Arbitration Agreement - Section 7, Arbitration and Conciliation Act, 1996 - The petitioner claimed an oral agreement for redevelopment of the society's building and relied on an arbitration clause in the share certificate issued by the society. The court held that the share certificate is not an agreement between the petitioner and the respondents, and the alleged oral agreement was not proved. Therefore, no arbitration agreement exists. (Paras 1-46) B) Arbitration Law - Appointment of Arbitrator - Section 11, Arbitration and Conciliation Act, 1996 - The court held that for appointment of an arbitrator, there must be a valid arbitration agreement. Since no such agreement was established, the petition for appointment of arbitrator was dismissed. (Paras 1-46)
Issue of Consideration
Whether there exists a valid arbitration agreement between the petitioner and the respondents, and whether the dispute raised by the petitioner is arbitrable under the alleged arbitration clause.
Final Decision
The petition is dismissed. No order as to costs.
Law Points
- Arbitration agreement must be in writing
- Existence of arbitration agreement must be established
- Dispute must arise out of or in relation to the agreement containing arbitration clause
- Section 7 of Arbitration and Conciliation Act
- 1996
- Section 11 of Arbitration and Conciliation Act
