Case Note & Summary
The petitioner, Shri Prabhakar Reddy, a founder partner of M/s. Classic Enterprises, filed two civil miscellaneous petitions under Section 11(5)(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator to adjudicate disputes arising from a reconstitution deed dated 23.2.2008. The respondents, including other partners and the firm, opposed the petitions, arguing that the reconstitution deed was never acted upon and that the original partnership deed did not contain an arbitration clause. The court examined the reconstitution deed and found that it contained a clear arbitration clause. The court held that the existence of an arbitration agreement is established and that the petitioner is entitled to appointment of an arbitrator. The court appointed a sole arbitrator to adjudicate all disputes between the parties as per the reconstitution deed. The petitions were allowed.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11(5)(6) of the Arbitration and Conciliation Act, 1996 - Existence of Arbitration Clause - The petitioner sought appointment of a sole arbitrator to adjudicate disputes arising from a reconstitution deed dated 23.2.2008. The respondents opposed, contending that the reconstitution deed was not acted upon and that the original partnership deed did not contain an arbitration clause. The court examined the reconstitution deed and found that it contained an arbitration clause. Held that the existence of an arbitration agreement is established, and the court appointed a sole arbitrator to resolve the disputes (Paras 1-10).
Issue of Consideration
Whether there exists a valid arbitration agreement between the parties and whether the petitioner is entitled to appointment of a sole arbitrator under Section 11(5)(6) of the Arbitration and Conciliation Act, 1996.
Final Decision
The court allowed the petitions and appointed a sole arbitrator to adjudicate all disputes between the parties as per the reconstitution deed dated 23.2.2008.
Law Points
- Arbitration agreement
- existence of arbitration clause
- appointment of arbitrator
- Section 11(5)(6) Arbitration and Conciliation Act
- 1996
- partnership dispute
- reconstitution deed
