PNP 1 ARP7-13.8 IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION ARBITRATION PETITION NO.7 OF 2010 M/s.Saijyot Builders and Developers and another ..Petitioners. Vs. Bhimabai Ramchandra Patil and another ..Respondents. .... Mr.Akhilesh S. Dubey with Mr.Rahul R. Sharma i/b Mr.Vagish R. Mishra for the Petitioners. None for the Respondents. ..... CORAM : DR.D.Y.CHANDRACHUD, J. 13 August 2010. P.C. : 1. The Arbitration Petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 has been filed on the basis of the following clause which is contained in a Memorandum of Understanding dated 17 June 2010 : “The present Memorandum of Understanding has been executed as per the Arbitration and Conciliation Act and will be guided by the terms and conducts therein.” 2. This clause cannot be regarded as an agreement between parties for arbitration of disputes. In Jagdish Chander v. Ramesh PNP 2 ARP7-13.8 Chander1 the Supreme Court has held that there are certain essential requirements of an arbitration agreement : “(ii) Even if the words “arbitration” and “Arbitral Tribunal (or arbitrator)” are not used with reference to the process of settlement or with reference to the private tribunal which has to adjudicate upon the disputes, in a clause relating to settlement of disputes, it does not detract from the clause being an arbitration agreement if it has the attributes or elements of an arbitration agreement. They are: (a) The agreement should be in writing. (b) The parties should have agreed to refer any disputes (present or future) between them to the decision of a private tribunal. (c) The private tribunal should be empowered to adjudicate upon the disputes in an impartial manner, giving due opportunity to the parties to put forth their case before it. (d) The parties should have agreed that the decision of the private tribunal in respect of the disputes will be binding on them.” 3. In the present case, it cannot be said that parties have agreed to refer the disputes between them to the decision of a private tribunal for adjudication; that the private tribunal is empowered to adjudicate upon the disputes and that the decision of the Tribunal would be binding upon them. The clause in the agreement does not constitute an arbitration agreement within the meaning of Section 7. In the circumstances, the Arbitration Petition shall stand dismissed. (Dr. D.Y.Chandrachud, J.) 1 (2007) 5 SCC 719.