The court confirmed that disputes arising from agreements with arbitration clauses must be referred to arbitration, and its review under Section 11 is limited to the prima facie existence of such clauses.

ORDER :

ABDUL QUDDHOSE, J.

1. This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking for appointment of a panel of arbitrators by this Court.

2. There seems to be a dispute between the petitioner and the respondents arising out of the Co-Development Agreement dated 20.05.2016 (CDA) and the amendment agreement to the Co-Development Agreement dated 06.04.2024 (Amended CDA). Both the agreements contain an arbitration clause. The existence of arbitration clause has not been disputed by the first respondent. The amendment agreement to the Co- Development Agreement dated 06.04.2024 (Amended CDA), is the agreement through which the second respondent took over the project of constructing ten towers, in view of the non completion of the project by the first respondent under the Co-Development Agreement dated 20.05.2016 (CDA). The amendment agreement to the Co-Development Agreement dated 06.04.2024 (Amended CDA) also contains an arbitration clause. The same is reproduced hereunder:

"3.15 Conciliation and Arbitration

3.15.1 Notwithstanding anything contained in Clause 21 of the CDA, all disputes arising between the Developer, the Co-Developer and EPDPL concerning/ relating any matter, question or issue under the CDA or any amendment thereof including this Amendment Agreement or its construction or effect or the rights, duties or liabilities of the Parties or the validity of any terms including any termination of the Agreement (the "Dispute") shall be firstly sought to be resolved by the Parties through conciliation efforts between: (i) Mr. Jitu Virwani, the Managing Director of EPDPL, for and on behalf of EPDPL, (ii) Mr. P.R. Gopala Raju, the Designated Partner of the Developer, for and on behalf of the Developer and (iii) the Chief Executive Officer of Embassy Office Parks Management Services Private Limited (the manager to the Embassy Office Parks REIT) (presently, Mr. Aravind Maiya), for and on behalf of the Co-Developer. Such conciliation shall be initiated by a written notice by one Party to the other ("Conciliation Notice"). If such reconciliation is not arrived at within 30 (thirty) days of the Conciliation Notice served on the other Party the Dispute shall finally be resolved by arbitration before a sole arbitrator mutually appointed by the Developer, EPDPL and the Co-Developer.

3.15.2 The arbitration shall be conducted before a sole arbitrator mutually appointed by the Parties. If the Parties fail to appoint a sole arbitrator then the Parties shall approach the High Court of Madras to appoint a panel of two arbitrators and the two arbitrators shall choose the presiding arbitrator.

3.15.3 The seat and venue of arbitrator shall be in Chennai and shall be conducted in accordance with rules of arbitration then in force of the Arbitration and Conciliation Act, 1996. The language of the arbitration shall be in English.

3.15.4. The Parties agree that the arbitration award shall be final and binding on the Parties. Judgment upon the arbitration award may be rendered in any Court of competent jurisdiction or application may be made to such Court for a judicial acceptance of the award and an order of enforcement, as the case may be."

3. The first respondent in its counter has not disputed the existence of the arbitration agreement between the petitioner and the respondents. In fact, the first respondent had also nominated an arbitrator while sending the reply to the notice sent by the petitioner to comply with the requirements of Section 21 of the Arbitration and Conciliation Act, 1996, wherein the petitioner had nominated its arbitra