IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 13th DAY OF AUGUST, 2012 BEFORE
THE HON'BLE MR.JUSTICE MOHAN SHANTANAGOUDAR C.M.P. NO. 25/2012
No.4, I Floor, Kapital
St. Patrick's Complex
Bangalore-560 025. ..Petitioner (By Sri Dhananjay Joshi, Adv.,
for M/s. Sreevatsa Associates)
No.4A, Regency Heights
No.3/2-1, Cleveland Road
Bangalore-560 005. ..Respondent (By Sri Arjun Rego, Adv., for M/s. L.P.E. Rego) This CMP is filed under Section 11(5) of the Arbitration and Conciliation Act, 1996 praying that this Hon'ble Court may be pleased to appoint Justice Venkatraman as arbitrator to resolve the disputes between the parties hereto by arbitration, in the interest of justice and equity. -2-
This CMP coming on for admission, this day the Court made the following:-
A partnership deed came to be entered into between the parties as per Annexure-A, dated 12.1.2011 to carry on business of real estate, constructions, buying and selling properties. However, the disputes are stated to have been arisen between the parties. The petitioner sent notice as per Annexure-C, dated 14.12.2011 for invoking the arbitration clause for resolving the dispute. However, no response is received from the respondent. Having no other way, this petition is filed praying for appointment of Arbitrator for resolution of the dispute under Section 11 of the Arbitration and Conciliation Act, 1996.
2. The partnership deed contains arbitration clause, which reads thus:-
"17. Arbitration: All questions and disputes in connection with this partnership between the partnership between the partners or between them and the legal representatives of the deceased partner and whether during the subsistence of this agreement or after the dissolution of partnership shall be referred to arbitration in which case the provisions of the Indian Arbitration and Conciliation Act, 1996, shall apply."
It is clear from the said arbitration clause that all the questions and disputes in connection with the partnership deed in question which arise during the subsistence of the agreement or after dissolution of the partnership firm shall be referred to arbitration. Thus, the disputes if any, arising out of the partnership deed dated 12.1.2011 need to be adjudicated upon by the Arbitrator. The petitioner has named the Arbitrator in his notice at Annexure-C. The -4-
respondent has no objection for the said Arbitrator to be appointed.
3. Sri Rego, learned counsel appearing for the respondent submits that the Arbitral Tribunal is required to resolve the disputes if any, arising out of the partnership deed and not the disputes which allegedly arose earlier before the execution of the partnership deed. He relies upon the judgment of the Apex Court in the case of Indowind Energy Ltd. vs. Wescare (I)Ltd. & another, reported in AIR 2000 SC 1793.
The said submissions are opposed by the learned counsel appearing for the petitioner contending that all questions should be kept open. Be that as it may, since the Arbitrator needs to proceed strictly in accordance with the arbitration -5-
clause contained in the partnership deed in question and as per law, no further observation needs to be made in this regard.
Accordingly, the following order is made:- Hon'ble Mr.Justice S.Venkataraman, Former Judge of High Court of Karnataka, #161, II Block, III Stage, West of Chord Road, Judges' Colony, Bangalore-560 079 is appointed as Sole Arbitrator, to resolve the dispute between the parties. The learned Arbitrator, on receipt of a copy of this order shall enter upon the reference, issue notice to the parties and then proceed to resolve the dispute, in accordance with the Arbitration and Conciliation Act, 1996.
Office is directed to send a copy of this order to the learned Arbitrator, forthwith. Office is further -6-
directed to return all the original papers, if any, filed along with the petition to the petitioner to enable him to produce before the learned Arbitrator. Petition is disposed of accordingly. Sd/-