Case Note & Summary
The appellant challenged the order dated 31.12.2018 of the High Court of Judicature at Hyderabad, which dismissed his application for the appointment of a sole arbitrator under the Arbitration and Conciliation Act, 1996. The dispute arose from an Agreement of Sale dated 23.03.2006, where the appellant agreed to purchase property from the respondent for Rs.5,53,90,000, having paid Rs.1,50,00,000 as earnest money. The respondent later claimed the agreement was cancelled and forfeited the advance amount, leading to disputes. The appellant filed multiple petitions for arbitration, but the High Court noted a supposed settlement recorded in earlier proceedings, leading to the dismissal of the application. The Supreme Court found that the previous orders did not conclusively establish a settlement, as no written agreement was presented, and the original dispute remained unresolved. The court emphasized that the failure to finalize the settlement revived the original dispute, warranting the appointment of an arbitrator. Consequently, the Supreme Court allowed the appeal, set aside the High Court's order, and appointed Mr. Justice Ramesh Ranganathan as the sole arbitrator.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Dispute Resolution - Arbitration and Conciliation Act, 1996, Sections 11(5), 11(6) - The court held that the previous orders did not indicate a concluded settlement binding the parties, thus allowing the appointment of an arbitrator to resolve the existing dispute. The court noted that the alleged settlement was not recorded or made part of the order, leaving the original dispute unresolved (Paras 14-16).
Issue of Consideration
Whether there was a concluded settlement between the parties and if the dispute should be resolved through arbitration.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's order dated 31.12.2018, and appointed Mr. Justice Ramesh Ranganathan as the sole arbitrator to resolve the dispute.
Law Points
- Arbitration agreement
- appointment of arbitrator
- dispute resolution
- settlement
- novation
