An arbitration agreement does not require registration and can be enforced for dispute resolution, even if it is part of an unregistered but compulsorily registrable document.

This is an application under Section 11 of the Arbitration & Conciliation Act, 1996 for appointment of an Arbitrator.

2. The dispute between the parties is with regard to the validity of the arbitration agreement which is an unregistered lease deed. The respondents have taken a plea that registration of lease deed is compulsory otherwise it is not an enforceable document.

3. According to me, the existence of an arbitration clause, though it is part and parcel of the original agreement, is independent thereof. It has a separate entity. In respect of an arbitration agreement in writing, may be it is part of a lease deed or a contract or independent supportive agreement, the Court cannot avoid taking of a decision in connection thereto merely on the ground that the lease deed which has an arbitration clause is not registered. Moreover, the registration of a document is required for the purpose of authentication of such document between the parties. The said issue has been settled by the different High Courts and the Supreme Court time and again, particularly in respect of the issues arising out from an arbitration agreement in the light of the provisions of the Arbitration and Conciliation Act, 1996. The Supreme Court, while considering the similar issue in 2011 AIR SCW 4484, (M/s. SMS Tea Estates Pvt. Ltd. Vs. M/s. Chandmari Tea Co. Pvt. Ltd.), has held as under:-

"9. An arbitration agreement does not require registration under the Registration Act. Even if it is found as one of the clauses in a contract or instrument, it is an independent agreement to refer the disputes to arbitration, which is independent of the main contract or instrument. Therefore, having regard to the proviso to section 49 of Registration Act read with section 16 (1) (a) of the Act, an arbitration agreement in an unregistered but compulsorily registrable document can be acted upon and enforced for the purpose of dispute resolution by arbitration."

4. Thus, in view of the above proposition of law, the plea of the respondents that the lease deed in question, which is not registered, cannot be accepted.

5. Therefore, as per the arbitration clause contained in the lease deed, I appoint the Director General, Post and Telegraph, as the sole Arbitrator to decide the dispute between the parties.

6. The arbitration application is accordingly disposed of, however, without imposing any cost.

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