Case Note & Summary
The petitioner, Mr. Bhupinder Singh Chadha, filed a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitral tribunal to resolve disputes arising under a Shareholders Agreement dated 27/01/2014 entered into between the petitioner and respondent nos. 1, 2, and 3. The respondents failed to appoint an arbitrator despite notice. The High Court of Karnataka, presided over by Justice Suraj Govindaraj, held that since an arbitration clause exists in the agreement and the respondents did not appoint an arbitrator, the petitioner is entitled to the appointment. The court appointed Sri. Justice A.V. Chandrashekar (Retired Judge of this Court) as the sole arbitrator to adjudicate the disputes, with the arbitrator to fix his own fees and proceed in accordance with the Act. The petition was allowed.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11(6) Arbitration and Conciliation Act, 1996 - Existence of Arbitration Agreement - Petitioner sought appointment of sole arbitrator to adjudicate disputes under Shareholders Agreement dated 27/01/2014 - Respondents failed to appoint arbitrator despite notice - Court held that since arbitration clause exists and respondents did not appoint arbitrator, petitioner is entitled to appointment under Section 11(6) - Appointed Sri. Justice A.V. Chandrashekar (Retd.) as sole arbitrator (Paras 1-3).
Issue of Consideration
Whether the petitioner is entitled to appointment of an arbitral tribunal under Section 11(6) of the Arbitration and Conciliation Act, 1996, given the existence of an arbitration clause in the Shareholders Agreement dated 27/01/2014 and the respondents' failure to appoint an arbitrator.
Final Decision
The petition is allowed. Sri. Justice A.V. Chandrashekar (Retired Judge of this Court) is appointed as the sole arbitrator to adjudicate the disputes between the parties. The arbitrator shall fix his own fees and proceed in accordance with the Arbitration and Conciliation Act, 1996.
Law Points
- Section 11(6) of Arbitration and Conciliation Act
- 1996
- Appointment of arbitrator
- Existence of arbitration agreement
- Failure to appoint arbitrator
