AIR 2011 SUPREME COURT 442 ::(2011) 1 WLC(SC)CVL 291 ::(2011) 1 CLR 79 (SC) ::(2010) 4 ArbiLR 205 ::(2011) 100 CorLA 475 ::(2011) 2 CivilCourtC 205 ::(2011) 2 CivLJ 580 ::2011 (1) SCC 320 ::(2012) 1 RecCivR 699 ::(2010) 11 Scale 225 ::AIR 2011 SC (Civil) 327 ::(2010) 4 CurCC 260 ::(2011) 85 All LR 244 ::(2012) 113 Cut LT 648 ::(2011) 1 Mad LJ 770 ::(2011) 2 MPLJ 284 ::(2011) 3 Mah LJ 26 ::(2011) 1 Ker LJ 88 ::(2011) 98 AllIndCas 114 (SC) ::(2011) 1 All WC 546

Supreme Court Of India

(From : Delhi)*

Hon'ble Judge(s): R. V. Raveendran, H. L. Gokhale , JJ

(A) Arbitration and Conciliation Act (26 of 1996) , S.7(4)(c), S.11— Reference to arbitration - Loan agreement - Appointment of arbitrator sought by lender - Second guarantor was not party to loan agreement containing arbitration clause between lender and borrower - He cannot be made party to reference in regard to dispute relating to repayment of such loan and subjected to arbitration award. @page-SC443 The words, 'statements of claim and defence' occurring in section7(4)(c) of the Act, are not restricted to the statement of claim and defence filed before the arbitrator. If there is an assertion of existence of an arbitration agreement in any suit, petition or application filed before any Court, and if there is no denial thereof in the defence/counter/written statement thereto filed by the other party to such suit, petition or application, then it can be said that there is an "exchange of statements of claim and defence" for the purpose of S. 7(4)(c) of the Act. If follows that if in the application filed under S. 11 of the Act, the applicant asserts the existence of an arbitration agreement with each of the respondents and if the respondents do not deny the said assertion, in their statement of defence, the Court can proceed on the basis that there is an arbitration agreement in writing between the parties. The application filed by the lender u....