Composite Reference Can't Be Made Of Disparate Causes Of Action: Calcutta High Court
The Calcutta High Court bench comprising Justice Sabyasachi Bhattacharyya has held that composite reference to an Arbitral Tribunal cannot be made for disparate causes of action in different agreements with different parties as it contravenes the principles of privity, confidentiality, and party autonomy. Background: The Petitioner, the Secretary of Ganaudyog Bazar Unnayan...
The Calcutta High Court bench comprising Justice Sabyasachi Bhattacharyya has held that composite reference to an Arbitral Tribunal cannot be made for disparate causes of action in different agreements with different parties as it contravenes the principles of privity, confidentiality, and party autonomy.
Background:
The Petitioner, the Secretary of Ganaudyog Bazar Unnayan & Service Cooperative Society Ltd., filed an application under Section 11 of the Arbitration and Conciliation Act, 1996, seeking the appointment of an arbitrator. This was preceded by a notice issued under Section 21 of the Act.
Observations by the Court:
The Court observed that the cooperative society is a separate juristic entity under the law and must sue in its own name. The Secretary cannot be the petitioner in a legal proceeding in her capacity when the cause of action concerns the cooperative society.
The Court noted that the Section 21 notice clubbed together distinct agreements involving different parties, contravening the principles of privity, confidentiality, and party autonomy. The agreements differed in subject matter and the composition of the arbitral tribunal, making a composite reference impossible.
Thus, the Section 11 application was dismissed.
Case Title: The Secretary Ganaudyog Bazar Unnayan and Service Co-operative Society Limited vs Iris Health Services Limited
Case Number: AP-COM/716/2024
Appearance:
For Petitioner: Mr. Arup Nath Bhattacharyya, Adv. Ms. Sreetama Biswas, Adv.
For Respondent: Mr. Abhrajit Mitra, Sr. Adv. Ms. Radhika Singh, Adv. Mr. Sourojit Dasgupta, Adv.
Date of Judgment: 11.09.2024