Court notes constitution of the Arbitral Tribunal based on a Partnership Deed covenant. Application is listed for the Tribunal to consider as a Section 17 petition on its own merits without expressing views on arbitrability.
Application disposed of; no order as to costs; matter to be considered by the Arbitral Tribunal.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
O.A.No.271 of 2022
O.A.No.271 of 2022
M.SUNDAR, J
Read this in conjunction with and in continuation of earlier proceedings made in the previous listing on 16.06.2022 (yesterday) which reads as follows:
'Read this in conjunction with and in continuation of earlier proceedings made in the previous listing on 06.06.2022.
2. Today Mr.R.Parthasarathy, learned counsel representing the counsel on record for applicant and Mr.B.Giridhar Rao, counsel on record for respondents 1 to 12 are before this Court. Ms.Janani Shankar, learned counsel who is before this Court submits that she has vakalatnama from the 13th respondent and she would be filing the vakalatnama in the Registry today before close of working hours. Registry to show the name of learned counsel for 13th respondent in the cause list if the vakalatnama is in order.
3. Arbitration agreement between the parties is in the form of a covenant in a Partnership Deed is dated 01.04.2021 and this covenant is Clause 45, which reads as follows:
'45. If any dispute arises between the Partners, it shall be settled by the negotiation and conciliation proceedings and on the failure of such proceedings, it shall be referred to Arbitration in accordance with the Arbitration and Conciliation Act, 1996 or any statutory modification thereon. Each of the parties to the dispute shall be entitled to nominate an Arbitrator and the arbitrators so nominated shall appoint a presiding arbitrator. Any proceedings to be
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had under this clause shall be governed by such Act or any statutory modifications thereof and the Courts in the city of Chennai alone shall have jurisdiction and no other court shall have jurisdiction.'
4. Aforementioned Clause serves as arbitration agreement within the meaning of Section 2(1)(b) read with Section 7 of A and C Act. Both sides agreed to have their respective nominees spelt out i.e., nominees acceptable to the other side and also request the two nominees to decide on the presiding Arbitrator so that Arbitral Tribunal can be constituted. To be noted, Clause 45 of Partnership Deed which is the arbitration agreement provides for arbitration by a three member Arbitral Tribunal.
5. All the counsel before this Court submitted that they will file a joint memo to this effect before the Court tomorrow so that the captioned application can go before the Arbitral Tribunal as a Section 17 petition.
List tomorrow. List on 17.06.2022.'
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clarity] has been constituted, captioned application will go before AT. It is open to the applicant to present a copy of captioned application before AT and make a request to treat the same as an application under Section 17 of A and C Act. If this course is adopted, AT shall consider the Section 17 application on its own merits and in accordance with law. Though obvious it is made clear that this Court has not expressed any opinion or view on the merits of the matter either in the captioned application or on the main arbitrable disputes. Therefore, even if issues pertaining to arbitrability of the some issues qua the lis that have been raised, the same shall be dealt with by AT on its own merits and in accordance with law.
Captioned application disposed of in aforesaid manner. There shall be no order as to costs.
17.06.2022
Speaking order: Yes/No
Index: Yes/No kmi
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M.SUNDAR.J.,
kmi
O.A.No.271 of 2022
17.06.2022
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1 issue framed by the court
Whether the constitution of the Arbitral Tribunal enables the application to be treated as one under Section 17 of the Arbitration and Conciliation Act.
Colour shows how this judgement treated each authority
Not citedReferred
3 provisions across 1 enactments
Applicant
Respondents
M.Sundar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
