JAYNDRA S SHAH Vs. MUKUND SOMCHAND SHAH

JUDGEMENT

(1.) This petition is filed by the petitioner under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Act") for appointment of arbitrator.

(2.) The case of the petitioner was that he entered into a partnership agreement with the respondent by a deed of partnership dated April 3, 1992 in the name and style of Mukund Brass Industries. Clause 14 of the Partnership Deed provided that in case of any difference or dispute mentioned therein, the same would be settled through arbitration proceedings in accordance with the provisions of the Act, as applicable to such proceedings. According to the petitioner, since dispute had arisen between the parties, he issued a notice on August 4, 1998 to refer the dispute to arbitrator. The respondent, however, failed to refer the matter to arbitrator and hence, the petition. Notice was issued on April 9, 1999 and it was made returnable on May 7, 1999. The matter was thereafter adjourned from time to time. I have heard Mr. J.R.Nanavati with Mr. Mr. A.R.Thakker for the petitioner and Mr. B.P.Munshi for the respondent.

(3.) Mr. Nanavati submitted that as there was a dispute between the partners, in accordance with Clause 14 of the partnership agreement, the dispute was required to be referred to arbitrator. There was failure on the part of the respondent in referring the matter to arbitrator. The petitioner, therefore, issued notice through advocate which was received by the respondent and even thereafter, several notices were issued but the respondent did not refer the matter to arbitrator and hence, provisions of Section 11 of the Act have been invoked by the petitioner. Relying on various judgments, Mr. Nanavati submitted that Chief Justice may exercise powers under Section 11 of the Act by appointing an arbitrator in accordance with provisions of the Partnership Deed.