Case Note & Summary
The petitioners, Mr. Prashant Vinod Vaghasiya and Mrs. Nirmala Vinod Vaghasiya, sought the appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, claiming to be partners of Avighnaa Infra Buildcon LLP. The respondent, Mr. Vivekanand Dhaneshwar Jha, opposed the petition on grounds including the lack of a notice under Section 21 by both petitioners and a recent settlement agreement dated December 7, 2025, which allegedly resolved all disputes. The court noted that various agreements existed between the parties, including a principal agreement dated October 15, 2019, and subsequent agreements that altered the partnership structure. The court found that while there was no explicit arbitration clause, Entry 14 of the First Schedule of the Limited Liability Partnership Act, 2008 allowed for arbitration of disputes arising from the partnership agreement. The court rejected objections regarding jurisdiction based on a clause that designated Mumbai courts for jurisdiction, interpreting it to mean that the Mumbai court would have jurisdiction for arbitration-related matters. The court appointed Mr. R. D. Dhanuka, a retired judge, as the sole arbitrator to adjudicate the disputes, directing the parties to provide necessary contact details and to appear before the arbitrator for further proceedings. The petition was disposed of with directions for the arbitration process to commence.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Jurisdiction Clause - Arbitration can be invoked even in absence of an explicit arbitration clause if disputes arise from the partnership agreement - Arbitration and Conciliation Act, 1996, Section 11(6) - The court held that disputes involving partners of a Limited Liability Partnership can be referred to arbitration despite the absence of an arbitration clause, as per Entry 14 of the First Schedule of the Limited Liability Partnership Act, 2008 (Paras 1-32).
Issue of Consideration
Whether the disputes between the Petitioners and Respondent can be referred to arbitration under the provisions of the Arbitration and Conciliation Act, 1996.
Final Decision
The court appointed Mr. R. D. Dhanuka as the Sole Arbitrator to adjudicate the disputes arising from the partnership agreements, directing the parties to provide necessary details for the arbitration process and stating that all costs would be borne equally by the Petitioners and Respondent No. 1.
Law Points
- Arbitration
- Conciliation Act
- Limited Liability Partnership Act
- Jurisdiction
- Appointment of Arbitrator
- Dispute Resolution
