Case Law Details
Emaar India Ltd. Vs Tarun Aggarwal Projects LLP & Anr (Supreme Court of India)
Conclusion: In present facts of the case, the Hon’ble Supreme Court of India observed that a preliminary enquiry shall be conducted by the High Court on the issue “whether the dispute is arbitrable or not” while deciding an application made under Section 11(5) & (6) of the Arbitration and Conciliation Act, 1996 for appointment of arbitrators.
Facts: In present case of the case, the Appeal was filed against the judgment and order dated 24.12.2021 passed by the High Court of Delhi wherein the High Court in exercise of powers under Section 11(6) of the Arbitration and Conciliation Act, 1996 has appointed arbitrators to resolve the dispute between the parties.
The original petitioners – respondents herein entered into a Collaboration Agreement for development of a residential colony and thereafter, a further Addendum Agreement dated 19.04.2011 was executed between the parties. The dispute arose between the parties and it was the case on behalf of the original applicants – respondents herein that the appellant herein did not comply with the obligations under the Addendum Agreement dated 19.04.2011. The respondents – original applicants/petitioners issued a legal notice dated 20.11.2019 raising demand for physical possession of 5 plots measuring 2160 sq. yds. and claiming a sum of Rs. 10 crores for the losses/damages suffered by them. As according to the original petitioners – respondents herein the dispute between the parties were arbitrable, the original petitioners appointed a former judge of the High Court as their arbitrator. The appellant herein denied appointment of the arbitrator. Therefore, the respondents herein approached the High Court for appointment of the arbitrators in terms of Clause 37 of the Addendum Agreement by submitting an application under Section 11(5) & (6) of the Arbitration Act seeking appointment of arbitrators by the Court.
The High Court appointed the arbitrators in terms of Clause 37 of the Addendum Agreement by observing that conjoint reading of Clauses 36 and 37 makes it clear that a party does have a right to seek enforcement of agreement before the Court of law but it does not bar settlement of disputes through Arbitration and Conciliation Act, 1996. By observing so, the High Court has allowed the application under Section 11(5) & (6) and has appointed the arbitrators, who shall appoint the third arbitrator in terms of Clause 37 of the Addendum Agreement.
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