Case Note & Summary
The petitioner, M/s. Shyamraju & Company (India) Pvt. Ltd., filed two civil miscellaneous petitions under Section 11(5) of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator to resolve disputes with the respondent, City Municipal Council, Hosapete. The disputes arose out of a contract between the parties. The petitioner contended that an arbitration agreement existed based on the exchange of letters dated 19-01-2018 and 12-03-2018 (Annexure-C and Annexure-D). The respondent opposed the petitions, arguing that there was no valid arbitration agreement. The court examined the letters and found that they clearly evidenced an agreement to refer disputes to arbitration. Accordingly, the court allowed the petitions and appointed a sole arbitrator to adjudicate the disputes. The court did not delve into the merits of the dispute, limiting its inquiry to the existence of the arbitration agreement.
Headnote
A) Arbitration Law - Existence of Arbitration Agreement - Section 7, Arbitration and Conciliation Act, 1996 - The court examined whether letters exchanged between the parties constituted an arbitration agreement. The petitioner relied on letters dated 19-01-2018 and 12-03-2018 to assert an agreement to refer disputes to arbitration. The court held that a valid arbitration agreement exists as the letters clearly indicate mutual consent to arbitrate. (Paras 1-5) B) Arbitration Law - Appointment of Arbitrator - Section 11(5), Arbitration and Conciliation Act, 1996 - The petitioner filed a petition under Section 11(5) seeking appointment of a sole arbitrator. The court, after finding a prima facie arbitration agreement, appointed a sole arbitrator to adjudicate the disputes between the parties. (Paras 1-5)
Issue of Consideration
Whether there exists an arbitration agreement between the parties based on the exchange of letters dated 19-01-2018 and 12-03-2018, and whether a sole arbitrator should be appointed under Section 11(5) of the Arbitration and Conciliation Act, 1996.
Final Decision
The court allowed the petitions and appointed a sole arbitrator to adjudicate the disputes between the parties.
Law Points
- Existence of arbitration agreement
- Section 7 of Arbitration and Conciliation Act
- 1996
- Exchange of letters constituting arbitration agreement
- Appointment of arbitrator under Section 11(5)
- Prima facie existence of arbitration agreement
