Case Note & Summary
The petitioner, Campus Students Communities Pvt Ltd, filed a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator to resolve disputes arising from a lease deed dated 22/11/2016 executed between the petitioner and the respondent, M/s Bagamane Enterprises. The lease deed contained an arbitration clause. The petitioner contended that disputes had arisen and the respondent failed to cooperate in appointing an arbitrator. The respondent did not oppose the petition. The court, after prima facie satisfaction of the existence of an arbitration agreement, allowed the petition and appointed an arbitrator to adjudicate the disputes. The court noted that the power under Section 11(6) is to be exercised when parties fail to agree on the appointment procedure. The decision was based on the arbitration clause in the lease deed and the failure of the parties to mutually appoint an arbitrator.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11(6) Arbitration and Conciliation Act, 1996 - Existence of Arbitration Agreement - Petitioner sought appointment of arbitrator under Section 11(6) based on arbitration clause in lease deed dated 22/11/2016 executed between petitioner and respondent - Court found that the lease deed contained an arbitration agreement and parties had failed to agree on appointment - Held that the court can exercise power under Section 11(6) to appoint an arbitrator (Paras 1-2).
Issue of Consideration
Whether an arbitrator should be appointed under Section 11(6) of the Arbitration and Conciliation Act, 1996, given the existence of an arbitration clause in the lease deed dated 22/11/2016.
Final Decision
The court allowed the petition and appointed an arbitrator to adjudicate the disputes between the parties arising out of the lease deed dated 22/11/2016.
Law Points
- Section 11(6) of the Arbitration and Conciliation Act
- 1996 empowers the court to appoint an arbitrator when parties fail to agree on the appointment procedure
- existence of an arbitration agreement is a prerequisite
- court's role is prima facie review of the arbitration agreement.
