Court determined that disputes arising from a Joint Venture Agreement should be resolved through arbitration as stipulated in the agreement, emphasizing the significance of adhering to the arbitration clause.

ORDER :

Ashok S.Kinagi, J.

This Civil Miscellaneous Petition is filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996, for the appointment of an arbitrator to resolve the dispute between the parties in terms of clause 19 of the Joint Venture Agreement dated 15.07.2020, vide Annexure-A, as per the provisions of the Arbitration and Conciliation Act, 1996 and the Rules.

2. Brief facts, leading rise to the filing of this petition are as follows:

The petitioner and respondents executed an “Agreement to form a Joint Venture in India, for soliciting Financial Products Business” on 15.07.2020. It is contended that some random codes were delivered by the respondents to the petitioner, which did not comply with the Joint Venture Agreement. There were multiple discussions between the petitioner and respondent No.1, and it was agreed that the agreement would be terminated, and the deed of termination would be signed. The draft was forwarded to respondent No.1, and respondent No.1 did not return the agreement with his signature. The petitioner issued a demand notice calling upon the respondents to return the money which was invested by the petitioner vide the demand notice dated 28.09.2022. Respondent No.1 spoke to the petitioner in October 2022, and agreed to return the money before 31.12.2022. The petitioner sent a second legal/demand notice on 25.01.2023 demanding that the money be returned to the petitioner, respondent No.1 refused to receive the said notice from the petitioner. The petitioner issued 3^rd demand cum arbitration notice on 02.03.2023, which the respondents refused. The petitioner, by invoking an arbitration clause as per the Joint Venture Agreement dated 15.07.2020, issued an arbitration notice on 20.03.2023, however, the respondents did not reply to the arbitration notice. Hence, this petition.

3. The respondents did not file a statement of objections.

4. Heard the arguments of the learned counsel for the petitioner, and the learned counsel for the respondents.

5. Learned counsel for the petitioner submits that the “Agreement to form a Joint Venture in India for soliciting Financial Products Business” was executed between the petitioner and respondents, and it was agreed that the agreement would be terminated, and a deed of termination was forwarded to respondent No.1 for affixing his signature. Respondent No.1 did not return the deed of termination with his signature. The petitioner issued several demand notices calling upon the respondents to return the money. Despite service of notice, the respondents refused to return the money. The petitioner invoked the arbitration clause by issuing an arbitration notice on 20.03.2023, but the respondents did not reply. Hence, he submits that there is an arbitration clause and a dispute arose between the petitioner and the respondent. Hence, prays to allow the petition.

6. Per contra, learned counsel for the respondents submits no objection to allow the petition.

7. Perused the records and considered the submissions of the learned counsel for the parties.

8. The point, that arise for consideration is as follows:

“Whether the petitioner has made out a ground to refer the dispute to the Arbitrator for the adjudication of dispute between the parties to the petition in terms of clause No.19 of the “Agreement to form a Joint Venture in India for soliciting Financial Products Business” dated 15.07.2020, vide Annexure-A as per the provisions of the Arbitration and Conciliation Act, and the Rules?”

9. The Joint Venture Agreement was executed between the petitioner and respondents on 15.07.2020, and a dispute arose between the petitione