{"id":276868,"date":"2022-11-05T18:00:42","date_gmt":"2022-11-05T12:30:42","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=276868"},"modified":"2022-11-05T18:00:42","modified_gmt":"2022-11-05T12:30:42","slug":"prayer-for-appointment-arbitrator-cannot-rejected-ground-vague-bereft-of-material-particulars-gujarathighcourt-legal-update-research-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/11\/05\/prayer-for-appointment-arbitrator-cannot-rejected-ground-vague-bereft-of-material-particulars-gujarathighcourt-legal-update-research-news\/","title":{"rendered":"Gujarat High Court | Notice for appointment of arbitrator cannot be rejected on ground of vague material particulars"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"text-indent: 18pt;\">&#160; &#160;<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\"><b>Gujarat High Court<\/b>: While deciding the instant petition, Aravind Kumar, C.J., said that the prayer for appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation (&#8216;A&amp;C&#8217;) Act, 2016 cannot be rejected on the ground that it is vague or bereft of the material particulars as Section 21 of the A&amp;C Act does not remotely suggests that the nature of dispute has to be enumerated or explained in the notice invoking the arbitration clause.<\/p>\n<p><b>Facts:<\/b><\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">On 10-12-2018, the petitioner and the respondents entered into a Partnership Agreement (&#8216;Deed&#8217;). On 2-02-2021, a notice was issued by the respondent, on account of some disputes between the parties, to settle the disputes within 15 days. When the disputes were not settled, on 23-03-2021, the petitioner got issued a notice invoking the arbitration clause of the Deed by nominating one as the sole arbitrator.<\/p>\n<p><b>Arguments:<\/b><\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">Counsel for the respondent contended that the arbitration notice issued by the petitioner lacked material particulars. Therefore, the petition should be dismissed.<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">Counsel for the petitioner cited <i>Umesh Goel<\/i> v. <i>H.P. Coop. Group Housing Society Ltd.<\/i>, <a href=\"https:\/\/www.scconline.com\/Members\/SearchResult.aspx\">(2016) 11 SCC 313<\/a> contending that the bar contained under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001527879\">69(3)<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002752440\">Partnership Act, 1932<\/a> will not be applicable to the proceedings under the A&amp;C Act.<\/p>\n<p><b>Observation and Analysis:<\/b><\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">The Court noted that in view of Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001527879\">69(3)<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002752440\">Partnership Act<\/a>, no suit can be instituted in any Court by any partner, to enforce a right arising from a contract or under the Partnership Act, unless the firm is registered.<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">The Court, while referring to Umesh Goel supra, said that according to the ruling, the arbitral proceedings does not come under the ambit of the expression &#8220;other proceedings&#8221;, as provided under the Partnership Act. Therefore, the Court reiterated that the bar imposed under Section 69 will have no application to the arbitral proceedings and award.<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">The Court held that a notice issued under Section 21 of the A&amp;C Act cannot be rejected on the grounds that it is vague or bereft of the material particulars.<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">The Court further held that Section 21 of the A&amp;C Act does not remotely suggest that the nature of dispute must be enumerated in the notice invoking the arbitration clause.<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">Hence, the Court allowed the petition, appointing a Sole Arbitrator, as the notice issued by the petitioner fell within the ambit of Section 21 of the A&amp;C Act.<\/p>\n<p style=\"text-indent: 18pt; margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">Hemlata Jain v. Padmavati Analkumar Mishra, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/ffjR15F9\">2022 SCC OnLine Guj 1787<\/a>, decided on 7-10-2022<\/span>]<\/p>\n<hr\/>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">*Kriti Kumar, Editorial Assistant has reported this brief.<\/span><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>&#160; &#160; Gujarat High Court: While deciding the instant petition, Aravind Kumar, C.J., said that the prayer for appointment of an arbitrator 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