Ganesh Krishnarao Naik v. Ajitrameshpandit

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

PURTI PRASAD PARAB CIVIL APPELLATE JURISDICTION PURTI PRASAD PARAB Date: 2025.06.23 18:19:44 +0530 ARBITRATION PETITION NO. 177 OF 2024 ALONGWITH INTERIM APPLICATION NO. 7357 OF 2025 IN ARBITRATION PETITION NO. 177 OF 2024 Ganesh Krishnarao Naik

...Petitioner

Versus

Ajit Ramesh Pandit and Ors.

...Respondents

Mr. Nikhil R. Dongre for the Petitioner.

Mr. Prathamesh Bhargude a/w Mr. Sumit Sonare for Respondent Nos.1 and 3.

CORAM

: SOMASEKHAR SUNDARESAN, J.

DATE : JUNE 19, 2025 ORDER :

1.

This Petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 ("the Act") seeking appointment of an arbitrator in connection with disputes and differences that are said to have arisen between the parties under an Agreement dated January 18, 2017 ("Agreement"). The arbitration agreement is contained in Clause 19 of the Agreement (found at Page No. 27 of the Petitioner). In the interest of brevity, the arbitration agreement is not being extracted here. Suffice it to say that this matter falls within the jurisdiction of this Court. 2.

Learned Counsel for the Petitioner submits that invocation of arbitration against the partners of the partnership firm forms part of the

record of the partnership whereas invocation against the firm is not part of the record. That need not hold up consideration of this Petition. Consequently, since the existence of the arbitration agreement among the partners is not in dispute and the parties have, in fact, attempted to resolve the disputes by mediation, it would be appropriate to refer the parties to arbitration forthwith.

3.

The scope of review under Section 11 is explicitly set out in Section 11(6A) of the Act. It is now trite law, with particular regard to the Supreme Court's decision rendered by a seven-judge Bench in the Interplay Judgement1 followed by multiple others, including SBI General2 and Patel3 that the Section 11 Court ought not to venture beyond examining the existence of a validly existing arbitration agreement that has been formally executed. Even questions of existential substance is a matter that falls squarely in the domain of the arbitral tribunal, in view of Section 16 of the Act.

4.

Being satisfied that an arbitration agreement is validly in existence, and that arbitration has been duly invoked, it is in the fitness of things to refer the disputes and differences between the parties in connection with the aforesaid Agreement dated January 18, 2017 to arbitration by a Sole Arbitrator.

1 In Re: Interplay Between Arbitration Agreements under the Arbitration and Conciliation Act, 1996 and Stamp Act, 1899 - (2024) 6 SCC 1 2 SBI General Insurance Co. Ltd. Vs. Krish Spinning - 2024 SCC OnLine SC 1754 3 Ajay Madhusudan Patel Vs. Jyotrindra S. Patel - 2024 SCC OnLine SC 2597

5.

In these circumstances, no useful purpose would be served by keeping this matter pending any further on the docket of this Court. The Petition is finally disposed of in the following terms:- A] Justice (Retd.) Avinash Gharote, a former judge of this Court is hereby appointed as the Sole Arbitrator to adjudicate upon the disputes and differences between the parties arising out of and in connection with the Agreement referred to above; Address : Plot No.49, Ground Floor, Shreenarayan Complex, Besides Punjab National Bank, Bajaj Nagar, Nagpur - 440 010.

E mail : avinashgharote.arb@gmail.com B] A copy of this Order will be communicated to the Learned Sole Arbitrator by the Advocate for the Petitioner within a period of one week from the date on which this order is uploaded on the website of this Court. The Petitioner shall provide the contact and communication particulars of the parties to the Arbitral Tribunal along with a copy of this Order; C] The Learned Sole Arbitrator is requested to forward the statutory Statement of Disclosure under Section 11(8) read with Section 12(1) of the Act to the Advocate for the Petitioner so as to enable them to file the same in the Registry of this Court. The Registry of this Court shall retain the said Statement on the file of this Petition and a copy of the same shall be furnished by the Advocate for the Petitioner to the Respondent;

D] The parties shall appear before the Learned Sole Arbitrator on such date and at such place as indicated, to obtain appropriate directions with regard to conduct of the arbitration

including fixing a schedule for pleadings, examination of witnesses, if any, schedule of hearings etc. At such meeting, the parties shall provide a valid and functional email address along with mobile and landline numbers of the respective Advocates of the parties to the Arbitral Tribunal. Communications to such email addresses shall constitute valid service of correspondence in connection with the arbitration; E] All arbitral costs and fees of the Arbitral Tribunal shall be borne by the parties equally in the first instance, and shall be subject to any final Award that may be passed by the Tribunal in relation to costs. 6.

Needless to say, nothing contained in this order is an expression of an opinion on merits of the matter or the relative strength of the parties. All issues on merits are expressly kept open to be agitated before the arbitral tribunal appointed hereby.

7.

All actions required to be taken pursuant to this order shall be taken upon receipt of a downloaded copy as available on this Court's website.

[ SOMASEKHAR SUNDARESAN, J.]