Shri Mahinder Kumar Khanna HUF & Ors. vs. Mahanagar Telephone Nigam Ltd.
Background
A Hindu Undivided Family and others sought appointment of an arbitrator for a dispute with Mahanagar Telephone Nigam Ltd. (MTNL). At the hearing, MTNL's counsel submitted that no arbitration agreement actually existed between the parties.
Decision Breakdown
Since there was no arbitration agreement to found jurisdiction under Section 11, the petitioner's counsel sought leave to withdraw the petition, reserving the right to pursue whatever other legal remedy might be available. The Court granted the leave and liberty sought and dismissed the petition as withdrawn.
Lesson Learnt
A Section 11 petition for appointing an arbitrator can only succeed if a valid arbitration agreement actually exists between the parties, without one, the petitioner must look to ordinary civil remedies (such as a regular lawsuit) instead.