Case Note & Summary
The petitioners, three individuals, filed a petition under Section 11(5) of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator to adjudicate disputes with the respondent, LGCL Properties Private Limited, arising out of a Memorandum of Agreement dated 14.06.2012. The petitioners had entered into a Joint Development Agreement (JDA) with the respondent on 16.04.2012, which was registered on 14.06.2012. The Memorandum of Agreement was part of the JDA and contained an arbitration clause. The respondent opposed the petition, contending that the Memorandum of Agreement was not an arbitration agreement and that the disputes were not arbitrable. The court examined the terms of the Memorandum of Agreement and found that it clearly provided for arbitration of disputes. The court held that the arbitration agreement exists and appointed a sole arbitrator to adjudicate the disputes. The petition was allowed.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11(5) Arbitration and Conciliation Act, 1996 - Existence of Arbitration Agreement - The petitioners sought appointment of a sole arbitrator to resolve disputes arising out of a Memorandum of Agreement dated 14.06.2012, which was part of a Joint Development Agreement. The respondent opposed, arguing that the Memorandum of Agreement was not an arbitration agreement. The court examined the terms and found that the Memorandum of Agreement contained an arbitration clause referring disputes to arbitration. Held that the arbitration agreement exists and an arbitrator should be appointed (Paras 1-5).
Issue of Consideration
Whether an arbitrator should be appointed under Section 11 of the Arbitration and Conciliation Act, 1996 to adjudicate disputes arising out of a Memorandum of Agreement dated 14.06.2012, which is part of a Joint Development Agreement.
Final Decision
The petition is allowed. A sole arbitrator is appointed to adjudicate the disputes between the parties arising out of the Memorandum of Agreement dated 14.06.2012.
Law Points
- Arbitration agreement
- existence of
- joint development agreement
- reference to arbitration
- appointment of arbitrator
- Section 11(5) Arbitration and Conciliation Act
- 1996
