Arbitrator-appointment petition is disposed of after the parties settle their dispute.

In brief

The question

1. Whether the parties’ settlement and acknowledged payment resolved the disputes forming the basis of the Section 11 petition

The court held

The Court accepted the joint memo and settlement agreement and disposed of the petition in terms of the settlement.

It also directed

No arbitrator was appointed.

01Facts

Anex Realty Services Pvt. Ltd. filed a petition under Section 11(5) and (6) of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator to adjudicate disputes under a Channel Partner Agreement dated 10 June 2020.

p. 2 · ¶ 1

During the proceedings, the parties filed a joint memo and settlement agreement recording that Sobha Limited had paid Anex ₹20,00,000 by demand draft in full and final settlement of the claims, and that Anex acknowledged receipt.

p. 3 · ¶ 3 · pp. 4–5

Anex did not wish to pursue the petition.

p. 5

02Issues

i.1. Whether the parties’ settlement and acknowledged payment resolved the disputes forming the basis of the Section 11 petition

p. 3 · ¶ 3 · pp. 8–9

ii.2. Whether the petition should be disposed of in terms of the joint memo and settlement agreement, without appointing an arbitrator

p. 5 · p. 12 · ¶ 7

03Law Applied

Section 11(5) and (6) of the Arbitration and Conciliation Act, 1996 provides the basis for seeking the appointment of an arbitrator where the agreed appointment process is not followed.

p. 2 · ¶ 1

The Court acted on the parties’ joint request to record their settlement and dispose of the petition; it did not determine the underlying contractual claims.

Provisions in the judgment · 1 · Linked ones open on LawLens

Arbitration and Conciliation Act, 1996 Section 11

04Reasoning

The parties jointly represented that they had amicably settled the dispute, and the settlement agreement recorded payment of ₹20,00,000 in full and final settlement, acknowledged by Anex.

p. 3 · ¶ 3 · pp. 8–9

The joint memo further stated that Anex would not press the petition.

p. 5

In light of the settlement and the parties’ request, the Court had no occasion to appoint an arbitrator or adjudicate the merits of the claims.

p. 12 · ¶ 7