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IN THE HIGH COURT OF JUDICATURE AT MADRAS
MR. JUSTICE ABDUL QUDDHOSE, J
K.S. and Company, Rep. by its Managing Partner, Mr.K. Sundaresan – Appellant
Versus
Union of India – Respondent
ORDER :
ABDUL QUDDHOSE, J.
This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking for appointment of an Arbitrator by this Court.
2. There seems to be a dispute between the petitioner and the respondent arising out of the agreement dated 09.08.2019. The said agreement contains an arbitration clause. The petitioner has invoked the arbitration clause by issuing notice to the respondent on 21.06.2024 in compliance with Section 21 of the Arbitration and Conciliation Act. No reply has been received from the respondent to the said arbitration invocation notice. Since there was no consensus between the parties with regard to the name of the arbitrator, the petitioner has filed this petition under Section 11 of the Arbitration and Conciliation Act.
3. A counter affidavit has been filed by the respondent before this Court contending that the dispute resolution mechanism stipulated in the terms and conditions of the agreement dated 09.08.2019 has not been adhered to by the petitioner. According to the respondent, before initiating arbitration, the petitioner will have to comply with the conciliation mechanism provided under Article 26.2 of the agreeme
The court affirmed that failure to respond to conciliation requests allows for the appointment of an arbitrator under the Arbitration and Conciliation Act, 1996.
The existence of an arbitration clause allows a party to seek court assistance for appointing an arbitrator when no consensus exists, with other disputes to be resolved by the arbitrator.
Court held that under Section 11 of the Arbitration and Conciliation Act, an arbitrator can be appointed when an arbitration clause exists and procedural requirements are met.
The Conciliation process mentioned in the Contract was not mandatory and could not affect the petitioner's right to invoke the Arbitration Agreement, especially when there was justified urgency to pr....
The conciliation process in the contract agreement was not mandatory, and non-compliance did not bar the petitioner from invoking arbitration.
The court must appoint an arbitrator when parties do not reach consensus despite an existing arbitration clause as stipulated under the Arbitration and Conciliation Act, 1996.
The existence of arbitration clauses in interlinked contracts suffices for appointing an Arbitrator, and procedural missteps do not bar relief if entitlement is established.
The main legal principle established in the judgment is the court's authority to appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 when a dispute arises and no arbi....
Compliance with Section 21 for notice invoking the arbitration clause is necessary for arbitration proceedings to commence.
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