WESCARE I LIMITED Vs. SUBUTHI FINANCE LIMITED

JUDGEMENT

(1.) 1. This Petition under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter called `ACA 1996') was filed on 12.07.2007 by M/s. Wescare Limited, praying for appointment of a sole Arbitrator to arbitrate upon the disputes between the petitioner and the respondents arising out of an agreement dated 24.02.2006 and pass an award thereof.

(2.) THE material facts are that the petitioner and the second respondent are all Companies registered under the Companies Act and having their Registered Offices in Chennai.

(3.) IN this matter, a counter statement has been filed by the second respondent. IN paragraph-4 of the counter statement, it has been stated that the second respondent is not a signatory to the agreement dated 24.2.2006 and no privity of contract exists between this petitioner and the second respondent. The second respondent has also referred to an order passed by this Court dated 21.8.2007 in a proceeding under Section 9 of ACA initiated at the instance of the petitioner and to certain observation of the learned Judge to the effect "a genuine doubt arises as to the binding nature of the agreement on the second respondent, who is not a signatory to the agreement." However, Section 9 Petition filed by the petitioner was dismissed by an order wherein it is stated:"the said order is not in any manner intended to be the findings on the merits of the case and it is open to the applicant to commence arbitration proceedings and prove the case before the Tribunal. Needless to add that what has been said in this order is only for the purpose of disposal of Section 9 Applications, leaving all the questions open to be determined by the Arbitrator uninfluenced by the observations made in this order.".