Dispute Clause Not a Valid Arbitration Agreement Due to Lack of Impartiality: Calcutta HC

The Calcutta High Court dismissed a petition under Section 11 of the Arbitration and Conciliation Act, 1996, seeking the appointment of an arbitrator, ruling that Clause 16 of the agreement lacked a valid arbitration clause.

The petitioner had engaged the respondent for mining services but alleged a breach of contract and sought arbitration under Clause 16.

The Court found that Clause 16 provided only for in-house dispute resolution between the Managing Director of the petitioner and the Designated Partner of the respondent, lacking the clear intention and impartiality required for arbitration.

Consequently, the Court dismissed the petition, citing lack of jurisdiction under Section 11.