Case Note & Summary
The petitioner, M/s Township Promoters, a registered partnership firm, filed a Civil Miscellaneous Petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator to adjudicate disputes arising out of a Joint Development Agreement (JDA) dated 30.03.2009 entered into with the respondent, M/s Mantri Promoters. The JDA contained an arbitration clause (Clause 25) providing for resolution of disputes through arbitration. The petitioner contended that disputes had arisen between the parties and that despite notice, the respondent failed to appoint an arbitrator, necessitating the court's intervention. The respondent opposed the petition, but the court, after hearing both sides, found that an arbitration agreement existed and that the conditions for appointment under Section 11(6) were satisfied. The court allowed the petition and appointed a former Judge of the High Court of Karnataka as the sole arbitrator to adjudicate the disputes in terms of Clause 25 of the JDA.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11(6) of the Arbitration and Conciliation Act, 1996 - Existence of Arbitration Agreement - The petitioner sought appointment of a sole arbitrator under Clause 25 of the Joint Development Agreement dated 30.03.2009. The court, after hearing both parties, allowed the petition and appointed a former Judge of this Court as the sole arbitrator to adjudicate the disputes between the parties. (Paras 1-3)
Issue of Consideration
Whether the petitioner is entitled to appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, in terms of Clause 25 of the Joint Development Agreement dated 30.03.2009.
Final Decision
The court allowed the petition and appointed a former Judge of this Court as the sole arbitrator to adjudicate the disputes between the parties in terms of Clause 25 of the Joint Development Agreement dated 30.03.2009.
Law Points
- Section 11(6) of the Arbitration and Conciliation Act
- 1996
- Appointment of Arbitrator
- Existence of Arbitration Agreement
- Joint Development Agreement
Case Details
2018 LawText (KAR) (08) 10
Civil Miscellaneous Petition No.57/2018
Sri Srinivasa Raghavan, Sri Nikhilesh Rao M. (for petitioner), Sri Suraj Govindaraj (for respondent)
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Nature of Litigation
Civil Miscellaneous Petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of sole arbitrator.
Remedy Sought
Petitioner seeks appointment of a sole arbitrator to adjudicate disputes between the parties in terms of Clause 25 of the Joint Development Agreement dated 30.03.2009.
Filing Reason
Disputes arose between the parties under the Joint Development Agreement, and the respondent failed to appoint an arbitrator despite notice.
Issues
Whether the petitioner is entitled to appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996.
Submissions/Arguments
Petitioner argued that disputes exist under the JDA and that Clause 25 provides for arbitration, but respondent failed to appoint an arbitrator.
Respondent opposed the petition, but the court found the arbitration agreement valid and allowed the petition.
Ratio Decidendi
Under Section 11(6) of the Arbitration and Conciliation Act, 1996, when a party fails to appoint an arbitrator as per the arbitration agreement, the court may appoint an arbitrator. Here, the existence of an arbitration clause (Clause 25) in the JDA was not disputed, and the respondent failed to appoint an arbitrator, warranting the court's intervention.
Judgment Excerpts
The petitioner filed the present Civil Miscellaneous Petition under the provisions of Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of the sole Arbitrator to adjudicate the disputes between the parties, in terms of Clause-25 of the Joint Development Agreement dated 30.3.2009.
Procedural History
The petitioner filed CMP No.57/2018 under Section 11(6) of the Arbitration and Conciliation Act, 1996. The petition was heard and reserved for orders, and the order was pronounced on 27.08.2018.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 11(6)
