Background of Dispute

• Original application filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 to appoint an arbitrator.
• Application dismissed on December 19, 2023, based on the court's finding that R-Cube Energy was a partnership firm.

Error Apparent on Record

• Petitioners' Claim: R-Cube Energy was not a partnership firm but registered as a private limited company in June 2019.
• Error in the prior ruling as legal objections under the Partnership Act were misapplied.

Legal Question: Maintainability of Review Petition

• Respondents’ Argument: Review petition not maintainable since the Arbitration Act does not explicitly provide for review.
• Petitioners’ Argument: High Court, as a court of record, can review its decisions under Article 215 of the Constitution of India.

Key Legal Provisions Discussed

• Arbitration and Conciliation Act, 1996:
  • Section 11(6): Appointment of arbitrator.
  • Section 5: Limited judicial intervention.
• Partnership Act, 1932:
  • Section 19(2)(a): Actions requiring partner consent.
• Article 215 of the Constitution: High Court's inherent power as a court of record.

Judgment Analysis

• The court acknowledged the error and highlighted the transition in arbitration law post the 2015 amendment, which shifted powers from the Chief Justice to High Courts.
• Found that R-Cube Energy's private limited status nullifies objections based on partnership law.

Outcome

• Order Recalled: The December 2023 decision dismissing the arbitration application was reversed.
• Revived Application: The case is now to be reassigned for hearing under Section 11(6).

Ratio Decidendi

1. Maintainability of Review:
   The High Court retains inherent powers under Article 215 to review orders to correct factual inaccuracies.
2. Factual Correction:
   Arbitration-related objections rooted in partnership law were invalid as the entity in question was a private limited company.
3. Amendment in Arbitration Act:
   Post-2015, High Courts, as courts of record, can exercise judicial powers in arbitration matters, including the ability to review decisions.

Relevant Acts and Sections:

1. Arbitration and Conciliation Act, 1996
   • Section 11(6): Procedure for arbitrator appointment.
   • Section 5: Minimal judicial intervention.
2. Indian Partnership Act, 1932
   • Section 19(2)(a): Restrictions on partner's authority.
3. Constitution of India
   • Article 215: High Court's status as a court of record with inherent powers.

Subjects:

Arbitration Law, Judicial Review, Corporate Law

Arbitration Act, Section 11(6), High Court Review Powers, Factual Error, Corporate Entity, Private Limited vs Partnership, Article 215, Judicial Interpretation