Dispute Resolution Through Arbitration: Court Appoints Sole Arbitrator to Settle Post-Joint Venture Liabilities.
04 January 2024
Arbitration Law >> Business & Commercial Law
A Joint Venture Agreement and Supplementary Deed were executed between a partnership firm (the applicant) and Mr. Ali Jaffari (the respondent) in 2006 for the development of property in Pune. The agreement included an arbitration clause (Clause 34), which outlined that disputes arising between the parties would be referred to arbitration. When disputes occurred over the termination of the agreement and financial matters, an arbitration tribunal was constituted, and an award was declared in 2019. The tribunal ruled that the Joint Venture Agreement was terminated but allowed the sale of remaining flats, with proceeds to be split between the parties.
Subsequent disputes arose regarding unpaid municipal taxes, income tax liabilities, and damages due to alleged breaches. The applicant attempted to resolve these issues through correspondence and requested the appointment of an arbitrator to address these outstanding matters. The respondent raised concerns about the arbitrability of the dispute, citing that similar matters were being contested in separate civil suits.
After examining the nature of the disputes and the provisions of the Joint Venture Agreement, the court concluded that the issues of liability for taxes and expenses should be referred to arbitration as stipulated in the agreement. Consequently, the court appointed Justice Sandeep Shinde, a retired Bombay High Court judge, as a sole arbitrator to resolve the matter, with proceedings to take place in Pune.