Facts
The Petitioner seeking appointment of a sole arbitrator filed this petition under Section 11(6) of the Arbitration Conciliation Act, 1996
Source reference: p. 1The disputes arose from the affairs of a Limited Liability Partnership (LLP) incorporated via an agreement dated 11.04.2023
Source reference: p. 1The Petitioner was subsequently inducted as a partner through a supplementary agreement dated 04.09.2023
Source reference: p. 1Following disputes, the Petitioner invoked the arbitration clause (Clause 63 of the original agreement) via a legal notice dated 29.01.2026
Source reference: p. 1-2The Respondents failed to appoint an arbitrator or respond to the notice within the statutory period, leading to the present filing
Source reference: p. 6Issues
1. Whether a sole arbitrator should be appointed under Section 11(6) of the Arbitration Conciliation Act, 1996, to adjudicate disputes arising from the LLP Agreement
Source reference: p. 1 / para. 1Law Applied
Section 11(6) of the Arbitration Conciliation Act, 1996, which empowers the High Court to appoint an arbitrator when a party fails to act as required under an appointment procedure
Source reference: p. 1Section 12 of the Act regarding mandatory disclosures relating to the independence and impartiality of the arbitrator
Source reference: p. 7Reasoning
The court noted that the existence of the arbitration agreement (Clause 63) was not in dispute between the parties
Source reference: p. 1, 6Clause 63 specifically provided that all disputes between partners or the LLP that could not be resolved amicably be referred to arbitration under the 1996 Act
Source reference: p. 1During the hearing, the counsel for both the Petitioner and Respondents reached a consensus that an independent sole arbitrator should be appointed to resolve the pending disputes
Source reference: p. 6Consequently, the court found it unnecessary to delve into the merits of the disputes and focused on facilitating the agreed-upon appointment while reserving the Respondents' rights to contest jurisdiction or arbitrability before the appointed tribunal
Source reference: p. 6, 7Holding
The court allowed the petition and appointed Mr. Syed Mehdi Imam, Advocate, as the Sole Arbitrator
The arbitration will be conducted under the aegis and rules of the Delhi International Arbitration Centre (DIAC)
Source reference: p. 7The arbitrator is required to file a disclosure under Section 12 of the Act
Source reference: p. 7The court held that all preliminary objections regarding jurisdiction and merits remain open for the arbitrator's determination
Source reference: p. 7The petition was disposed of accordingly
Source reference: p. 7Original Court PDF
Mr. IduvsHaji Abrar & Ors.
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