POWERTECH WORLD WIDE LIMITED versus DELVIN INTERNATIONAL GENERAL TRADING LLC

POWERTECH WORLD WIDE LIMITED versus DELVIN INTERNATIONAL GENERAL TRADING LLC

The clause in the purchase contract, read with the correspondence and conduct of the parties, constitutes a binding arbitration agreement. Respondent admitted existence of the clause and agreed to the appointment of a sole/arbitrator. Any drafting ambiguity is extinguished by consensus ad idem to arbitrate disputes. The arbitration petition is allowed; sole arbitrator appointed under Section 11(6).

Parties
Petitioner: Powertech World Wide Limited; Respondent: Delvin International General Trading LLC
Jurisdiction
India
Judgment Date
14 November 2011
Procedural Posture
Arbitration Petition (civil) No. 5 of 2010 / Original Jurisdiction; Appointment of Arbitrator Under S. 11(6) of the Arbitration and Conciliation Act, 1996
Outcome
Petition allowed; Sole Arbitrator appointed.
Legal Topics
Appointment of Arbitrator, Enforceability of Arbitration Agreements, Interpretation of Arbitration Clauses
Arbitration Law Appointment of Arbitrator Enforceability of Arbitration Agreements Interpretation of Arbitration Clauses

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Parties

Powertech World Wide Limited

Petitioner

Delvin International General Trading LLC

Respondent

Procedural Posture

Arbitration Petition (civil) No. 5 of 2010 / Original Jurisdiction; Appointment of Arbitrator Under S. 11(6) of the Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether the arbitration clause in the purchase contract constitutes a binding arbitration agreement enforceable under Section 11(6) of the Arbitration and Conciliation Act, 1996?
  2. 2 Whether ambiguity in the drafting of the arbitration clause prevents appointment of a sole arbitrator?
  3. 3 What are the prerequisites and essential attributes of a valid arbitration agreement?

Ratio Decidendi

The clause in the purchase contract, read with the correspondence and conduct of the parties, constitutes a binding arbitration agreement. Respondent admitted existence of the clause and agreed to the appointment of a sole/arbitrator. Any drafting ambiguity is extinguished by consensus ad idem to arbitrate disputes. The arbitration petition is allowed; sole arbitrator appointed under Section 11(6).

Court Disposition

Petition allowed; Sole Arbitrator appointed.

Orders

  • Mr. Justice D.R. Dhanuka (Retired Judge, Bombay High Court) appointed as Sole Arbitrator to adjudicate disputes.
  • Parties at liberty to file claims/counter claims before arbitrator.