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 relied on two letters: Annexure-C dated 19-01-2018 and Annexure-D dated 12-03-2018, which the petitioner contended contained an arbitration agreement. The respondent opposed the petitions, arguing that there was no valid arbitration agreement. The court examined the letters and found that they clearly indicated an intention to refer disputes to arbitration. The court noted that the letters constituted an arbitration agreement in writing as required under Section 7 of the Act. Consequently, the court allowed the petitions and appointed a sole arbitrator to adjudicate the disputes between the parties. The court did not specify the name of the arbitrator but left it to be appointed by the parties or by the court if necessary.
Headnote
A) Arbitration Law - Existence of Arbitration Agreement - Exchange of Letters - The court examined whether letters dated 19-01-2018 and 12-03-2018 constituted an arbitration agreement under Section 7 of the Arbitration and Conciliation Act, 1996. The petitioner sought appointment of a sole arbitrator for disputes arising from a contract with the respondent municipal council. The court held that the exchange of letters clearly evidenced an agreement to refer disputes to arbitration, and thus appointed a sole arbitrator. (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 resolve the disputes between the parties.
Law Points
- Arbitration agreement
- existence of arbitration agreement
- appointment of arbitrator
- Section 11(5) Arbitration and Conciliation Act
- 1996
- exchange of letters constituting arbitration agreement
