IN THE HIGH COURT AT CALCUTTA
Shekhar B. Saraf, J.
Jayant Chaurasia - Appellant
Vs.
Anup Kumar Chaurasia - Respondent
AP No. 214 of 2021, GA No. 1 of 2021
Decided On : 15-12-2022
Arbitration and Conciliation Act, 1996 - Section 11 and 12(1) - Arbitration agreement - Disputes - Seeking appointment of a sole arbitrator - Held, civil suits pending before Alipore Court or elsewhere does not restrain Court in proceeding with this Section 11 application as there is nothing in law which affects jurisdiction and powers of Court in enforcing arbitration agreement between parties - Section 8 of Act makes it obligatory for Court to refer parties to arbitration where there is an arbitration clause in agreement - Appointment is subject to submission of declaration by Arbitrator in terms of Section 12(1) in form prescribed in the Sixth Schedule of Act before Registrar, Original Side of this Court within four weeks from today - Arbitration petition allowed.
JUDGMENT :
Shekhar B. Saraf, J.
1. This is an application under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act’) seeking appointment of a sole arbitrator to arbitrate all disputes and differences which have arisen between the parties in relation to the partnership agreement dated April 25, 1997.
2. The relevant facts necessary for the determination of this application are as follows:
b. Originally, the father and uncle of the petitioner, namely, Shaligram Chaurasia and Kashinath Chaurasia were the partners of the said partnership business. In 1997, the petitioner and respondent were inducted as the partners of the said partnership business on the terms and conditions as recorded and mentioned in the partnership deed dated April 25, 1997.
c. By efflux of time, Kashinath Chaurasia and Shaligram Chaurasia expired in 2011 and 2012 respectively and their shares devolved upon the petitioner and respondent respectively in terms of the provisions contained in the said partnership deed.
d. On and from April 2017, there were signs of discord and difference of opinion between the parties in relation to the management of the said partnership business. Pursuant to such disagreements, two civil suits being T.S No. 916 of 2018 and T.S. No. 1046 of 2018 were filed by the petitioner before the Alipore Court. The respondent had also instituted two civil suits being T.S. No. 551 of 2018 and T.S. No. 985 of 2021 before the Alipore Court. However, the parties failed to resolve the disagreements between them and the same further flared up post filing of the said civil suits. It is to be noted that the T.S. 985 of 2021 was instituted by the respondent after the petitioner had approached this Court in the present application.
e. On October 19, 2020, the petitioner sent a notice and asked the respondent to adhere to the terms and conditions of the partnership agreement, and to allow access to books of accounts and participation in the business to the petitioner. The petitioner followed up with a legal notice on November 13, 2020 wherein he dissolved the partnership business and called upon the respondent to divide the assets and properties of the said business as per the said agreement.
f. Finally, on February 11, 2021, the petitioner issued a letter upon the respondent invoking arbitration as per Clause 26 of the said partnership deed and appointed Mr Manabendra Ray as the Learned Arbitrator to adjudicate the disputes which have arisen between the parties.
g. On receipt of no response from the respondent, the present petition was filed by the petitioner seeking appointment of a sole arbitrator by the Court to adjudicate the disputes between the parties.
Submissions
3. The counsel appearing on behalf of the petitioner has made the following arguments :
b. The counsel stated that the statements contained in the affidavit-in-opposition filed by the respondent were wholly false to the knowledge of the petitioner and the same has been done deliberately and consciously.
c. Finally, the counsel contended that the partnership deed between the parties is not forged or manufactured and that the disputes between the parties should be referred to arbitration as there exists a valid arbitration clause and that the arbitrator
Vidya Droalia v. Durga Trading Corporation reported in (2021) 2 SCC 1
A. Ayyasamy vs. A Paramasivam & Ors. reported in (2016) 10 SCC 386
Deutsche Post Bank Home Finance Ltd. vs. Taduri Sridhar reported in (2011) 11 SCC 375
TRF Limited v. Energo Engineering Limited reported in (2017) 8 SCC 377
The main legal point established in the judgment is the requirement for an unequivocal and unambiguous consent by the parties to arbitrate, and the application of the prima facie test to determine th....
The referral court's scope under Section 11(6-A) is limited to the prima facie existence of an arbitration agreement. A formal notice under Section 21 is not mandatory if the respondent has prior kno....
The main legal point established is the court's reliance on the unequivocal admission of the respondent and the presence of his signature on the Deed of Retirement to affirm the existence of the arbi....
Arbitration clauses in prior agreements continue to bind new partners despite subsequent agreements lacking such clauses; issues about stamp duty deficiencies can be raised in arbitration.
The main legal point established in the judgment is that the bar imposed under Section 69 of the Partnership Act, 1932, does not apply to arbitration proceedings under the Arbitration and Conciliatio....
The main legal point established in the judgment is that the dispute amongst the partners regarding the dealings of the firm could be referred to arbitration as per the partnership deed, but once the....
An unregistered partnership deed does not bar the enforcement of arbitration clauses within it, allowing for dispute resolution under the Arbitration and Conciliation Act.
An arbitration clause in a partnership deed is valid and enforceable even if the partnership is unregistered, and the dispute pertaining to such partnership can be referred to arbitration.
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