Case Note & Summary
The petitioner, Bablu Namdev Navratne, filed an arbitration petition under Section 11(4) of the Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator. The dispute arose between the parties under a Partnership Deed dated 10th September 2011, which contained an arbitration agreement in Clause 16. The petitioner had previously filed a petition (No.56 of 2014) under Section 11 of the Act, which was dismissed on 28th October 2014 for lack of notice under Section 11(5). Thereafter, the petitioner issued a notice on 7th November 2014 under Section 11(5) to the respondent no.1 partnership firm and its two partners. The notice was served only on one partner, Mr. Manabhai Ladabhai Patel, on 22nd December 2014, and not on the firm. The arbitration petition was affirmed on 7th November 2014 and lodged on 19th January 2015. The respondents opposed the petition, arguing that the notice was not served on the firm and that the petition was premature. The court considered whether the notice was validly served. It held that service on one partner is sufficient service on the partnership firm, and the notice was valid. The court also noted that the respondents did not respond to the notice. Accordingly, the court allowed the petition, appointed a sole arbitrator, and directed the arbitrator to proceed with the arbitration. The civil application was disposed of as infructuous.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11(4) and 11(5) of the Arbitration and Conciliation Act, 1996 - Notice Requirement - The petitioner issued a notice under Section 11(5) to invoke arbitration, but the notice was served only on one partner and not on the partnership firm. The court held that service on one partner is sufficient service on the firm, and the notice was valid. The petition was allowed and an arbitrator was appointed. (Paras 2-5)
Issue of Consideration
Whether the notice issued under Section 11(5) of the Arbitration and Conciliation Act, 1996 was validly served on the respondents to invoke the arbitration agreement, and whether the arbitration petition under Section 11(4) is maintainable.
Final Decision
The court allowed the arbitration petition, appointed a sole arbitrator, and directed the arbitrator to proceed with the arbitration. The civil application was disposed of as infructuous.
Law Points
- Section 11(4) of the Arbitration and Conciliation Act
- 1996
- Notice under Section 11(5)
- Service on partner sufficient for partnership firm
- Arbitration agreement in partnership deed
