Case Note & Summary
The petitioner, Nirmal Software Services Pvt. Ltd., entered into a Memorandum of Understanding (MoU) with Dr. Babasaheb Ambedkar Marathwada University on 20.10.2012 for web enabling and web services. The MoU was amended on 07.04.2016 to include Clause 3.5 regarding intellectual property rights transfer. The MoU contained an arbitration clause (Clause 12) providing for dispute resolution through arbitration at Aurangabad under the Arbitration and Conciliation Act, 1996. Disputes arose when the university kept a purchase order in abeyance. The petitioner filed a writ petition before the Bombay High Court seeking mandamus for payment, which was dismissed on 18.09.2018 on the ground that the arbitration clause must be given effect to. The petitioner then filed a Special Leave Petition in the Supreme Court. During hearing, the petitioner's counsel agreed to refer the dispute to arbitration. The parties jointly requested appointment of Mr. Justice Pratap Hardas (Retd.) as sole arbitrator. The Supreme Court appointed him subject to declarations under Section 12 of the Act, with fees as per the Fourth Schedule, and directed arbitration at Aurangabad. The petition was disposed of accordingly.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Consent of Parties - Arbitration and Conciliation Act, 1996, Sections 11, 12 - Dispute arose from MoU for web enabling services containing arbitration clause - Parties jointly requested appointment of retired judge as sole arbitrator - Court appointed arbitrator on consent, subject to declarations under Section 12 - Held that arbitration proceedings to be conducted at Aurangabad as per MoU (Paras 1-5).
Issue of Consideration
Whether the dispute should be referred to arbitration in terms of the arbitration clause in the MoU
Final Decision
Supreme Court appointed Mr. Justice Pratap Hardas (Retd.) as Sole Arbitrator subject to declarations under Section 12 of the Arbitration and Conciliation Act, 1996, with fees as per Fourth Schedule, seat of arbitration at Aurangabad. Petition disposed of.
Law Points
- Arbitration clause in MoU
- Appointment of arbitrator by consent
- Section 12 of Arbitration and Conciliation Act
- 1996
- Fourth Schedule fees
