A premature arbitration request lacking a valid notice under Section 21 of the Arbitration and Conciliation Act cannot be maintained.

JUDGMENT

Applicants and the respondents are partners of a partnership firm “D’ Heavenly Mist”. Annexure A1 is a copy of the partnership deed. It contains an arbitration clause.

2. Disputes arose between the petitioners and the respondents. Petitioners issued a communication by e-mail, produced as Annexure A5 and thereafter approached this Court in this arbitration request contending that the the respondents did not respond to the communication invoking the arbitration clause.

3. The petitioners have invoked the jurisdiction of the Commercial Court under Section 9 of the Arbitration and Conciliation Act. Against the order passed by the Commercial Court an appeal was filed and that was dismissed by the Commercial Appellate Court. O.P.(Civil) No.794 of 2024 was filed against the order of the Commercial Appellate Court, by which the order of the Commercial Court was upheld. By judgment dated 26.06.2024, the O.P(Civil) was disposed by a learned Single Judge of this Court. The learned Single Judge held that there was no proper invocation of the arbitration clause as contemplated under Section 21 of the Arbitration and Conciliation Act, 1996 .

Thereafter, the 1^st petitioner issued Annexure A5 notice by e-mail to all other partners on 09.01.2025.

4. Heard the learned Counsel for the petitioners and the learned Senior Counsel appearing for the respondents. The learned Senior Counsel submitted that, in view of the finding in O.P(Civil) No.794 of 2024, the communication relied on by the petitioners to file this arbitration request cannot be treated as a valid notice as contemplated under Section 21 of the Arbitration and Conciliation Act. He hence submitted that, in view of the judgment of this Court in Sajid Pasha v. Abdunnasir [2025 (6) KLT 813] , this arbitration request is premature. The learned Counsel for the petitioner on the other hand submitted that Annexure A5 is a valid notice as contemplated under Section 21 of the Act. Though the same was issued subsequent to the filing of the arbitration request, as the statutory requirement has been complied with, this arbitration request can be allowed.

5. In Sajid Pasha v. Abdunnasir [2025 (6) KLT

813], this Court has held that an arbitration request filed without a proper notice under Section 21 of the Arbitration and Conciliation Act cannot maintained. In the instant case, in view of the findings in O.P(Civil) No.794 of 2024 which have become final, this Court cannot take a view that Annexure A4 communication, originally produced along with the arbitration request is a valid notice as contemplated under Section 21 of the Act. Therefore, as rightly pointed out by the learned Senior Counsel for the respondents, this arbitration request was premature when ti was filed. The said defect cannot be subsequently rectified by issuing a notice during the pendency of the proceedings before this Court.

Therefore, this arbitration request is rejected as premature. However, it will be open to the petitioners to approach this Court again if required.

Sd/-