Case Note & Summary
The applicant, Infra Poonam Developers LLP, filed an application under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of an arbitrator to resolve disputes arising from a Deed of Alteration of Partnership dated 10 April 2013. The application was filed with a delay of 258 days, and the applicant also filed an interim application for condonation of delay. The dispute pertains to a property known as Panwala chawl Nos. 2 and 3 in Mumbai, originally belonging to a private trust and acquired by M/s. R.B. Builders and Developers (the Firm) for redevelopment. The Firm had 7 partners initially, and later a nominee of the applicant, Poonam Infra, was added as an 8th partner with a 15% profit-sharing ratio. However, it was realized that a partnership firm cannot be a partner of another firm, so the Deed of Alteration of Partnership was executed on 10 April 2013, making the applicant itself the 8th partner. The redevelopment project faced issues, including a show cause notice from MHADA and litigation between the Society, Firm, and MHADA. The applicant sought arbitration to resolve disputes regarding the partnership and redevelopment. The court considered the submissions of both parties, including the respondent's opposition to the condonation of delay. The court found the explanation for the delay to be reasonable and condoned the delay. Consequently, the court allowed the arbitration application and appointed a sole arbitrator to adjudicate the disputes.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11 of the Arbitration and Conciliation Act, 1996 - Condonation of Delay - The applicant sought appointment of an arbitrator for disputes arising from a Deed of Alteration of Partnership dated 10 April 2013. The application was filed with a delay of 258 days. The court considered the explanation for delay and found it sufficient to condone. Held that the delay is condoned and an arbitrator is appointed to adjudicate the disputes between the parties (Paras 1-21).
Issue of Consideration
Whether the delay of 258 days in filing the arbitration application under Section 11 of the Arbitration and Conciliation Act, 1996 should be condoned and an arbitrator appointed.
Final Decision
The court condoned the delay of 258 days and allowed the arbitration application, appointing a sole arbitrator to adjudicate the disputes between the parties.
Law Points
- Section 11 of the Arbitration and Conciliation Act
- 1996
- Limitation Act
- 1963
- Section 5 of the Limitation Act
- Condonation of delay
- Appointment of arbitrator
