Nayara Energy Ltd. vs M/S Guru Seva Fuels

COMM. ARBITRATION PETITION (L) NO. 28953 OF 2023 ALONGWITH COMM. ARBITRATION PETITION NO. 774 OF 2024 ALONGWITH COMM. ARBITRATION PETITION NO. 775 OF 2024 ALONGWITH COMM. ARBITRATION PETITION (L) NO. 29247 OF 2023

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Mr. P.M. Bhansali a/w Ms. Dharini Jain for the Applicant. None for Respondents.

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CORAM : SOMASEKHAR SUNDARESAN, J. DATE : JULY 4, 2025

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ORDER :

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Commercial Arbitration Application (L) No. 27582 of 2023 is not

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on Board and upon mentioning by the Advocate taken on board.

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Page 1 of 5 July 4, 2025

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Purti Parab

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517-CARAP-261-2024 @ Ors.doc

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Commercial Arbitration Application No.261 of 2024 and Commercial Arbitration Application (L) No. 27582 of 2023 are both applications filed under Section 11 of the Arbitration and Conciliation Act, 1996 ( “the Act” ) seeking appointment of an arbitrator in connection with disputes and differences that are said to have arisen between the parties under the agreements dated November 28, 2016 ( “Agreements” ). The arbitration agreements are contained in Clause 54 and 57 of the Agreement (found at Page Nos. 54 and 57 of the Applications). In the interest of brevity, the arbitration agreement is not being extracted here. Suffice it to say that this matter falls within the jurisdiction of this Court.

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The Applicant has invoked arbitration on September 12, 2022 to which there is no reply from the Respondent.

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The scope of review under Section 11 is explicitly set out in Section 11(6A) of the Act. It is now trite law, with particular regard to the Supreme Court’s decision rendered by a seven-judge Bench in the Interplay Judgement¹ followed by multiple others, including SBI General² and Patel³ that the Section 11 Court ought not to venture beyond examining the existence of a validly existing arbitration agreement that has been formally executed. Even questions of existential substance is a matter that falls squarely in the domain of the arbitral tribunal, in view of Section 16 of the

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Act.

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1 In Re: Interplay Between Arbitration Agreements under the Arbitration and Conciliation Act, 1996 and Stamp Act, 1899 - (2024) 6 SCC 1

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2 SBI General Insurance Co. Ltd. Vs. Krish Spinning - 2024 SCC OnLine SC 1754

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3 Ajay Madhusudan Patel Vs. Jyotrindra S. Patel - 2024 SCC OnLine SC 2597

Page 2 of 5

July 4, 2025

Purti Parab

517-CARAP-261-2024 @ Ors.doc

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Being satisfied that an arbitration agreement is validly in existence, and that arbitration has been duly invoked, it is in the fitness of things to refer the disputes and differences between the parties in connection with the aforesaid Agreement to arbitration by a Sole Arbitrator.

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In these circumstances, no useful purpose would be served by keeping these matters pending any further on the docket of this Court. Both these Applications are finally disposed of in the following terms:-

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A] Presolv360, an independent online dispute resolution institution is directed to appoint a sole arbitrator to adjudicate upon the disputes and differences between the parties arising out of and in connection with the Agreement referred to above and administer the same;

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B] The contact particulars of the Director, Presolv360 are set out below:-

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Email id : [email protected]

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Contact No. - +91-9820167337

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Address : 1^st Floor, Esperanca Building,

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Shahid Bhagat Singh Road,

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Colaba, Mumbai – 400 001.

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Website: www.presolv360.com

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C] A copy of this Order will be communicated to Presolv360 by the Advocates for the Applicant within a period of one week from today. The Applicant shall provide the contact and communication particulars of the parties to Presolv360 along with a copy of this Order;

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Page 3 of 5 July 4, 2025

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Purti Parab

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517-CARAP-261-2024 @ Ors.doc

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D] It is clarified that Presolv360 being an ODR institution, all proceedings will be conducted online through electronic mode, unless otherwise agreed between the appointed Arbitrator and the parties, with appropriate notification to the administration of Presolv360.

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E] The administration of Presolv360 is requested to appoint an independent arbitrator in compliance with the Act and its own rules consistent with the Act as soon as possible and in any event within a period of two weeks from receipt of a copy of this Order;

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F] The parties shall provide a valid and functional email address along with mobile and landline numbers of the respective Advocates of the parties to the administration of Presolv360 and any other particulars as reasonably requested by the administration. Communications to such email addresses shall constitute valid service of correspondence in connection with the arbitration;

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G] All arbitral costs and fees of the arbitration shall be borne by the parties equally in the first instance, and shall be subject to any final Award that may be passed by the Tribunal in relation to costs; and

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H] The seat of the arbitration shall be deemed to be the same as the seat discernible from the Agreement while the arbitration shall primarily be conducted online.

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Needless to say, nothing contained in this order is an expression of an opinion on merits of the matter or the relative strength of the parties.

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All issues on merits are expressly kept open to be agitated before the arbitral tribunal appointed hereby.

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Page 4 of 5 July 4, 2025

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Purti Parab

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517-CARAP-261-2024 @ Ors.doc

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Commercial Arbitration Application No.239 of 2024, Commercial Arbitration Petition (L) No.28953 of 2023, Commercial Arbitration Petition No.774 of 2024, Commercial Arbitration Petition No.775 of 2024 and Commercial Arbitration Petition (L) No.29247 of 2023 are stood over to July 18, 2025 .

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All actions required to be taken pursuant to this order shall be taken upon receipt of a downloaded copy as available on this Court’s website.

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[ SOMASEKHAR SUNDARESAN, J.]

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Page 5 of 5 July 4, 2025

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Purti Parab

Nayara Energy Ltd. v. M/S Guru Seva Fuels

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Nayara Energy Ltd. v. M/S Guru Seva Fuels

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