Arbitration case insights issue 49: March 2020
April 1, 2020
Delhi High Court reiterates limited scope for examining validity of arbitration agreement under Section 11(6) of Arbitration Act.
The Petitioner held a 40 per cent profit share and Respondent Nos. 2 to 4 (“Respondents”) held a combined share of 60 per cent in M/S. Jugal Kishore Shyam Prakash & Co. (“Respondent No. 1”/“Firm”), a partnership firm. The Petitioner contended, inter alia, that the Respondents had not acted in accordance with the terms of the partnership deed dated 18 May 1992 (“1992 Deed”) entered into between the parties since 2009.
As per the Petitioner, the 1992 Deed contained an arbitration clause. In furtherance of her contentions,
the Petitioner issued a notice invoking arbitration for peaceful and amicable dissolution of the partnership and rendition of accounts. Since an arbitrator could not be appointed by the consent of the parties, the Petitioner approached the Delhi High Court (“Court”) under Section 11(6) of the Arbitration and Conciliation Act, 1996 (“Act”) seeking the appointment.