Jaspal Singh Nagi vs Vinamra Developers

This Application has been 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 an agreement dated August 21, 2013. The arbitration agreement is contained in Clause 5 (found at Page 61 of the Application). 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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Digitally signed by ASHWINI ASHWINI JANARDAN JANARDAN VALLAKATI VALLAKATI Date: 2025.07.23 16:36:16 +0530

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June 30, 2025

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Corrected pursuant to Speaking to the Minutes order dated June 30, 2025. Ashwini Vallakati

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The arbitration agreement provides for arbitration by two persons, one of whom is the Applicant himself (the other is a witness to the Partnership Deed). Such an arbitration agreement would not be in conformity with the underlying principles governing the Act. Therefore, Learned Counsel for the Applicant leaves it to the Court to appoint an arbitrator in terms of Section 11 of the Act.

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It is apparent from the record that the arbitration agreement was invoked by the Applicant on March 5, 2025. There is no reply filed to the said invocation. Despite service, none appears for the Respondents, who are essentially the other partners of the firm and the firm itself. In these circumstances, no useful purpose would be served in keeping this Application pending any further.

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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 decisions of 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 1 In Re: Interplay Between Arbitration Agreement under 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 1974

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3 Ajay Madhusudan Patel Vs. Jyotindra S. Patel, 2024 SCC OnLine, 2597

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June 30, 2025

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Corrected pursuant to Speaking to the Minutes order dated June 30, 2025. Ashwini Vallakati

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a validly existing arbitration agreement that has been formally executed.

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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 Act.

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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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While the arbitration clause is silent about the seat and venue, the only business of the firm being to develop properties located in Mumbai, and taking note of all the partners being in Mumbai, the seat of arbitration shall be regarded as Mumbai.

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Consequently, this Application is finally disposed of in the following terms:-

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A) Mr. Bhushan Walimbe, a learned advocate of this

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Court is hereby appointed as the Sole Arbitrator to adjudicate upon the disputes and differences between

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Page 3 of 6

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June 30, 2025

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Corrected pursuant to Speaking to the Minutes order dated June 30, 2025. Ashwini Vallakati

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the parties arising out of and in connection with the Agreement referred to above;

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Email ID: [email protected]

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B) A copy of this Order will be communicated to the Learned Sole Arbitrator by the Advocates for the Applicant within a period of one week from the date of upload of this order. The Applicant shall provide the contact and communication particulars of the parties to the Arbitral Tribunal along with a copy of this Order;

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C) The Learned Sole Arbitrator is requested to forward the statutory Statement of Disclosure under Section 11(8) read with Section 12(1) of the Act to the Advocates for the Petitioner so as to enable them to file the same in the Registry of this Court. The Registry of this Court shall retain the said Statement on the file of this Application and a copy of the same shall be furnished by the Advocates for the Applicant to the Respondent;

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Page 4 of 6 June 30, 2025

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Corrected pursuant to Speaking to the Minutes order dated June 30, 2025. Ashwini Vallakati

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D) The parties shall appear before the Learned Sole Arbitrator on such date and at such place as indicated, to obtain appropriate directions with regard to conduct of the arbitration including fixing a schedule for pleadings, examination of witnesses, if any, schedule of hearings etc. At such meeting, 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 Arbitral Tribunal. Communications to such email addresses shall constitute valid service of correspondence in connection with the arbitration;

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E) All arbitral costs and fees of the Arbitral Tribunal 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.

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