In a dispute arising from a Retirement-cum-Admission Deed requiring a three-arbitrator panel, the petitioner sought tribunal constitution under Section 11 after unilaterally appointing a sole arbitrator. The Court held the petition premature as the appointment violated the agreement.
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Arb.O.P.(Comm.Div.) No.386 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 10.11.2022
CORAM
THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY
Arb.O.P.(Comm.Div.) No.386 of 2022
T.Suresh Kumar ... Petitioner vs. 1.K.Ravichandran 2.Valli Priya ... Respondents
PRAYER : Arbitration Original Petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, pleased to appoint any fit and competent person as an arbitrator as per the arbitration and conciliation act 1956, so as to adjudicate the claim and the dispute between the petitioner and the respondents under the Retirement-cum-Admission Deed dated 15.07.2021.
For Petitioner : Mr.A.Murali For Respondents : Mr.D.Jayachandran
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Arb.O.P.(Comm.Div.) No.386 of 2022
ORDER
The petitioner seeks the constitution of an arbitral tribunal to resolve
the disputes between the parties arising out of the Retirement-cumAdmission Deed dated 15.07.2021.
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Arb.O.P.(Comm.Div.) No.386 of 2022
"19. Death, insolvency or retirement of any Partner from the Partnership shall not dissolve the Partnership and surviving partner/s may continue to carry on the Business either as the Sole Proprietor or in Partnership with others / either in Partnership with themselves or with others as may be mutually agreed upon by and between the Surviving Partners. All the disputes and questions whatsoever whether between the parties hereto or between one of them and the legal heir or legal representative of the other or between their respective heirs or legal representative and whether during or after the determination of this Partnership and whether in relation to the interpretation of these presents or
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Arb.O.P.(Comm.Div.) No.386 of 2022
to any act of omission of a party to the dispute or as to any act which ought to be done by the parties in dispute or any of them in relation to any other matter whatsoever touching these presents shall be referred to a single arbitrator, if the parties can agree upon one and in case the parties do not agree, to two arbitrators one to be appointed by each party to the dispute and in case of difference between the arbitrators, to the Umpire to be appointed by the arbitrators before they enter upon the arbitration and the award and the decision of the single arbitrator or of the two arbitrators or of the Umpire as the case may shall be final and binding upon both the parties and the provisions of the Indian Arbitration Act, 1940 or any statutory enactment for the time being in force as to arbitration shall apply so far as may be to such arbitration."
Arb.O.P.(Comm.Div.) No.386 of 2022
assumption that a sole arbitrator could be appointed without the consent of the other parties. This is clearly not in conformity with the relevant arbitration clause.
10.11.2022
rna Index : Yes / No Internet : Yes / No
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Arb.O.P.(Comm.Div.) No.386 of 2022
SENTHILKUMAR RAMAMOORTHY,J
rna
Arb.O.P.(Comm.Div.) No.386 of 2022
10.11.2022
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2 issues framed by the court
Whether the High Court can constitute an arbitral tribunal under Section 11 when the parties have an agreement for a three-arbitrator mechanism and the petitioner unilaterally appointed a sole arbitra
Whether the petitioner's appointment of a sole arbitrator violated the dispute resolution clause requiring agreement of parties on a sole arbitrator or a panel.
2 provisions across 2 enactments
T.Suresh Kumar
K.Ravichandran
Valli Priya
Senthilkumar Ramamoorthy
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
