(Prayer: Petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, praying to appoint a Arbitrator(s) to decide the disputes and differences between the petitioner and Respondent in terms of Sales Agency Agreement dated 13.02.2022 read with the Cancellation Agreement dated 30.01.2023.)

1. This petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for the sake of brevity, hereinafter referred to as 'the Act') for appointment of an Arbitrator to decide the disputes and differences between the petitioner and the respondents arising out of the Sales Agency Agreement dated 13.02.2022 and the Cancellation Agreement dated 30.01.2023.

2. Heard the learned counsel for the petitioner and the learned counsel appearing on behalf of the respondents.

3. The case of the petitioner is that they had engaged the services of the 1st respondent proprietorship concern which is owned by the 2nd respondent for the purpose of supplying and marketing timber. The 3rd respondent is the husband of the 2nd respondent. Apart from the same, the 2nd respondent was also engaged as a consultant in the proprietorship concern.

4. The specific case of the petitioner is that a sum of Rs.42 Lakhs was jointly received by the respondents for the purpose of purchasing a residential flat and this amount was not repaid back to the petitioner. Hence, a detailed notice was sent on 01.06.2024 to all the respondents and the arbitration clause contained in the Sales Agency Agreement dated 13.02.2022 was invoked. It is under these circumstances, the present petition has been filed before this Court.

5. When this Court decides a petition under Section 11 of the Act, it has to be seen whether there is an agreement between the parties in line with Section 7 of the Act. There is an Agreement between the parties which has been named as the Sales Agency Agreement dated 13.02.2022. Even as per the petition filed before this Court, the petitioner is not claiming for the repayment of any amount under this Agreement and petitioner seems to have paid independently a sum of Rs.42 Lakhs as advance to enable the 2nd and 3rd respondents to purchase a residential property. Therefore, the undisputed claim of the petitioner is towards recovery of this amount, which does not have any nexus with the Sales Agency Agreement dated 13.02.2022.

6. The respondents have filed a counter and have denied the liability. It is not necessary for this Court to go into the merits of the case to decide as to whether the respondents are liable to pay the amount claimed by the petitioner. Such an exercise is beyond the scope of this petition.

7. The petitioner cannot invoke arbitration clause under the Sales Agency Agreement dated 13.02.2022 for recovery of the advance amount that was paid to the respondents for purchasing a property. This is an independent transaction which has nothing to do with the Sales Agency Agreement. Just because there is an agreement between the same parties, every other amount that is payable by the respondents to the petitioner cannot be traced to the Agreement and in such an event, the arbitration clause contained in such an Agreement cannot be invoked for appointment of an Arbitrator and seek for the recovery of the amount arising out of another independent transaction.

8. In the light of the above discussion, this Court holds that there is no agreement in line with Section 7 of the Act insofar as the claim made by the petitioner for a sum of Rs.42 Lakhs, which was given as an advance amount for the purchase of a residential flat. This transaction is not traceable to the Sales Agency Agreement. In view of the same, the relief as sought for by the petitioner cannot be granted by this Court.

9. If at all the petitioner has such an independent claim against the respondents, it has to be worked out before the appropriate forum in the manner known to law.

10. In the result, this petition stands dismissed. No Costs.