Bombay High Court Allows Arbitration Petition to Appoint Sole Arbitrator in Mining Lease Dispute. Court holds that existence of arbitration clause in the agreement is sufficient to refer parties to arbitration under Section 11 of the Arbitration and Conciliation Act, 1996.

High Court: Bombay High Court Bench: BOMBAY
  • 88
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Case Note & Summary

The judgment concerns two arbitration petitions filed under Section 11 of the Arbitration and Conciliation Act, 1996. The first petition was filed by M/s. Resurgere Mines & Minerals India Ltd. against Vyagreshwar Mineral Industrial Producers Co-operative Society and its Chairman, Ashok Gangaram Patil. The second petition was filed by the Society against Resurgere and Patil. Both petitions sought appointment of an arbitrator to resolve disputes arising from a mining lease agreement. The court noted that the agreement contained an arbitration clause. The parties had disputes regarding the mining lease. The court considered the submissions of both sides. The court held that the existence of the arbitration clause is sufficient to refer the parties to arbitration. The court appointed a sole arbitrator to adjudicate the disputes. The court disposed of both petitions and the notice of motion.

Headnote

A) Arbitration Law - Appointment of Arbitrator - Section 11 of the Arbitration and Conciliation Act, 1996 - Existence of Arbitration Clause - The dispute arose from a mining lease agreement containing an arbitration clause. The court held that the existence of the arbitration clause is sufficient to refer the parties to arbitration. The court appointed a sole arbitrator to adjudicate the disputes between the parties. (Paras 1-19)

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Issue of Consideration

Whether the arbitration clause in the agreement between the parties is valid and whether the court should appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.

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Final Decision

The court allowed both arbitration petitions and appointed a sole arbitrator to adjudicate the disputes between the parties. The notice of motion was disposed of.

Law Points

  • Existence of arbitration clause
  • Section 11 of the Arbitration and Conciliation Act
  • 1996
  • Appointment of arbitrator
  • Mining lease dispute
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Case Details

2016:BHC-OS:6782

Arbitration Petition (Lodging) No.618 of 2016 and Arbitration Petition (Lodging) No.629 of 2016

2016-05-10

2016:BHC-OS:6782

Mr. Sharan Jagtiani with Mr. S.B. Pawar and Ms. Nikita Sawant i/b S.K. Legal Associates for the Appellant in Arbitration Petition (Lodging) No.618 of 2016 and the Respondent No.1 in Arbitration Petition (Lodging) No.629 of 2016; Mr. D.D. Madon, Senior Counsel with Mr. Mayur Khandeparkar

M/s. Resurgere Mines & Minerals India Ltd. (in ARBPL618-16); Vyagreshwar Mineral Industrial Producers Co-operative Society (in ARBPL629-16)

Vyagreshwar Mineral Industrial Producers Co-operative Society and Mr. Ashok Gangaram Patil (in ARBPL618-16); M/s. Resurgere Mines & Minerals India Ltd. and Mr. Ashok Gangaram Patil (in ARBPL629-16)

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Nature of Litigation

Arbitration petitions under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of an arbitrator to resolve disputes arising from a mining lease agreement.

Remedy Sought

Appointment of a sole arbitrator to adjudicate disputes between the parties.

Filing Reason

Disputes arose between the parties regarding a mining lease agreement which contained an arbitration clause.

Issues

Whether the arbitration clause in the agreement is valid and enforceable. Whether the court should appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.

Submissions/Arguments

The appellant in ARBPL618-16 argued that the arbitration clause exists and an arbitrator should be appointed. The respondent in ARBPL618-16 opposed the appointment.

Ratio Decidendi

The existence of an arbitration clause in the agreement is sufficient to refer the parties to arbitration under Section 11 of the Arbitration and Conciliation Act, 1996. The court has the power to appoint an arbitrator when the parties fail to agree on one.

Judgment Excerpts

The court held that the existence of the arbitration clause is sufficient to refer the parties to arbitration.

Procedural History

Two arbitration petitions were filed under Section 11 of the Arbitration and Conciliation Act, 1996. The court heard both petitions together and disposed of them by appointing a sole arbitrator.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: Section 11
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High Court Bombay High Court Allows Arbitration Petition to Appoint Sole Arbitrator in Mining Lease Dispute. Court holds that existence of arbitration clause in the agreement is sufficient to refer parties to arbitration under Section 11 of the Arbitration and ...
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