Bombay High Court Adjudicates Applications for Appointment of Arbitrator under Section 11 of Arbitration and Conciliation Act, 1996 in Partnership Dispute. The Court considered whether to appoint a sole arbitrator for disputes arising from a partnership deed containing multiple arbitration clauses.

Two arbitration applications seeking appointment of sole arbitrator for disputes under partnership deed and joint development agreement

Appointment of sole arbitrator (Justice B.N. Srikrishna or any High Court Judge in first application; Justice C.K. Thakkar or any retired Supreme Court/High Court Judge in second application)

Disputes arose regarding non-performance, delay, and repudiation of obligations under the Deed of Partnership dated 25 March 1997, leading to invocation of separate arbitration clauses

On 4 October 2011, this Court granted interim measures under Section 9 of the Arbitration and Conciliation Act, 1996 in proceedings filed by the applicants

Applicants contended that the agreement dated 25 March 1997 consisted of two separate and independent contracts (partnership and joint development) each with its own arbitration clause, and that disputes had arisen warranting termination of the joint development agreement and dissolution of the partnership. Respondents opposed the applications, questioning under which provisions of the Deed and/or the Arbitration and Conciliation Act the applicants were entitled to nominate an arbitrator, and filed affidavits denying the existence of arbitrable disputes.

The said agreement was described as 'Deed of Partnership.' The agreement consists of two separate and independent contracts one pertaining to entering into partnership and the other pertaining to an agreement to agree to jointly develop the said properties. The applicants dissolved the partnership constituted between the parties as and from the date of the notice.

25 March 1997: Deed of Partnership executed between applicants and respondent Nos. 1 and 2, constituting M/s Kanha & Company. 10 April 2008: Applicants' letter to respondents alleging no progress in development. 29 April 2011: Applicants' letter stating agreement stood at an end due to respondents' repudiation. 15 & 18 July 2011: Applicants issued public notices asserting sole ownership of properties. 19 July 2011: Respondents' letter asserting partnership firm owns properties. 30 September 2011: Applicants' notice invoking arbitration under Clause 34 for joint development dispute and nominating Justice B.N. Srikrishna as arbitrator. October 2011: Applicants filed Section 9 petition and obtained interim measures on 4 October 2011. 5 October 2011: Applicants' notice invoking arbitration under Clauses 31 and 35 for dissolution of firm, dissolving partnership, and nominating Mr. M.L. Bhakta as arbitrator. 7 October 2011: Mr. Bhakta declined. 14 October 2011: Applicants nominated Justice C.K. Thakkar as substitute arbitrator. 25 October 2011: Respondents' solicitors sought basis for nomination. 1 November 2011: Applicants reiterated nomination. 15 March 2012: Arbitration Application No. 107 of 2012 filed. 30 July 2014: Arbitration Application (L) No. 1180 of 2014 filed. 13 August 2014: Judgment reserved. 28 August 2014: Judgment pronounced.

• Arbitration and Conciliation Act, 1996: 9, 11(6)
• Indian Partnership Act, 1932:
• Companies Act, 1913: