JAGDISH CHANDER versus RAMESH CHANDER AND ORS.

JAGDISH CHANDER versus RAMESH CHANDER AND ORS.

Clause 16 of the Deed of Partnership is not an arbitration agreement as defined under Section 7 of the Arbitration and Conciliation Act, 1996; mutual consent is required before disputes are referred to arbitration, and thus there is no binding obligation to arbitrate. In the absence of an arbitration agreement, an arbitrator cannot be appointed under Section 11 of the Act.

Parties
Appellant: Jagdish Chander; Respondent: Ramesh Chander; Respondent: Respondents 2 to 6
Jurisdiction
India
Judgment Date
26 April 2007
Procedural Posture
Civil Appeal / Appeal From Order Appointing Arbitrator Under Section 11 of the Arbitration and Conciliation Act, 1996
Outcome
Appeal allowed; order appointing arbitrator under Section 11 set aside; application rejected.
Legal Topics
Arbitration Agreement, Appointment of Arbitrator, Alternative Dispute Resolution
Arbitration Law Civil Procedure Arbitration Agreement Appointment of Arbitrator Alternative Dispute Resolution

Case Brief

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Parties

Jagdish Chander

Appellant

Ramesh Chander

Respondent

Respondents 2 to 6

Respondent

Procedural Posture

Civil Appeal / Appeal From Order Appointing Arbitrator Under Section 11 of the Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether clause 16 of the Deed of Partnership constitutes an 'arbitration agreement' under Section 7 of the Arbitration and Conciliation Act, 1996
  2. 2 Whether an arbitrator could be appointed in the absence of an arbitration agreement

Ratio Decidendi

Clause 16 of the Deed of Partnership is not an arbitration agreement as defined under Section 7 of the Arbitration and Conciliation Act, 1996; mutual consent is required before disputes are referred to arbitration, and thus there is no binding obligation to arbitrate. In the absence of an arbitration agreement, an arbitrator cannot be appointed under Section 11 of the Act.

Court Disposition

Appeal allowed; order appointing arbitrator under Section 11 set aside; application rejected.

Orders

  • Order appointing arbitrator is set aside.
  • Application under Section 11 is rejected.