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

Bombay HC12 Jun 2026CARAP/239/2024

Case brief

AI extract

What is this about?

Section 11 Arbitration and Conciliation Act appointment of sole arbitrator; Nayara Energy Limited vs M/s Guru Seva Fuels; agreement dated 28-11-2016, Clause 21 dispute resolution, sole arbitrator appointed by Company, Mumbai seat; notice invoking arbitration answered 26-09-2022, no compliance; private service held valid and sufficient; Ms. Dhruti Kapadia appointed sole Arbitrator; disclosure under S.11(8) r/w S.12(1); costs shared equally pending award; merits kept open; Bombay High Court, Pedneker J., 15-06-2026.

What did the court decide?

Appointment of Ms. Dhruti Kapadia as sole Arbitrator under Section 11 of the Arbitration and Conciliation Act to adjudicate the disputes arising out of and in connection with the Agreement dated 28 November 2016; merits left open for the Arbitral Tribunal. ¶¶37

Nayara Energy Ltd. vs M/S Guru Seva Fuels — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether an arbitrator ought to be appointed under Section 11 of the Arbitration and Conciliation Act for the unresolved disputes between the parties arising from their agreement dated 28 November 2016. +1 more

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Court's answer

Ms. Dhruti Kapadia, learned Advocate of the Court, was appointed as sole Arbitrator to adjudicate the disputes and differences between the parties arising out of and in connection with the Agreement.

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Ratio / Principle

Service of the notice on the Respondent was held to be valid and sufficient, permitting the Court to proceed to make the appointment.

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Key takeaways

The seat of the arbitration is to be governed by the provisions of the agreement executed between the parties.ratio¶¶30
All arbitral costs and fees of the Arbitral Tribunal are to be borne by the parties equally in the first instance, subject to any final Award of the Tribunal on costs.ratio¶¶35
All issues on merits were expressly left open to be agitated before the Arbitral Tribunal.ratio

Detailed headnote1 paragraphs

Bombay High Court (O.O.C.J.), Commercial Arbitration Application No. 239 of 2024, decided on 15 June 2026 by Arun R. Pedneker, J. — Nayara Energy Limited v. M/s Guru Seva Fuels. Under Section 11 of the Arbitration and Conciliation Act, the Court appointed Ms. Dhruti Kapadia, Advocate, as sole Arbitrator for disputes under the parties' agreement dated 28 November 2016, whose Clause 21 provides for arbitration by a sole arbitrator appointed by the Company, seated in Mumbai. The arbitration notice had been responded to by the Respondent on 26 September 2022 without compliance. Service effected privately at the address recorded in the agreement — corroborated by the Respondent's advocate's reply and postal tracking — was held valid and sufficient. Seat of arbitration left to the agreement; arbitral costs and fees to be borne equally in the first instance subject to the final award; statutory disclosure statement under Sections 11(8) read with 12(1) directed; all merits issues expressly kept open. Application disposed of.

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

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COMMERCIAL ARBITRATION APPLICATION NO.239 OF 2024

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BHALCHANDRA GOPAL DUSANE

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Digitally signed by BHALCHANDRA GOPAL DUSANE Date: 2026.06.16 19:43:45 +0530

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Nayara Energy Limited .. Applicant Vs. M/s Guru Seva Fuels .. Respondent

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Ms. P.M. Bhansali, Advocate for Applicant. None for Respondent.

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CORAM : ARUN R. PEDNEKER, J. DATE : 15^th JUNE 2026.

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P.C. :

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Learned Counsel for the Applicant submits that the Applicant and the Respondent entered into an agreement dated 28^th November 2016, and any disputes arising therefrom are required to be resolved through arbitration. In particular, Clause 21 of the Agreement dated 28^th November 2016 provides for the resolution of disputes by way of arbitration. Clause 21 of the Agreement is as under:-

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21. Dispute Resolution :

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All disputes and differences of any nature whatsoever or any claim, cross claim, counter claim or any dispute arising under or out of this Agreement or any breach or alleged breach of any of the covenants thereof or as to the interpretation of any clause /provision of this Agreement shall be resolved through mutual discussion between the parties hereto, failing which the same shall be referred to and finally resolved by arbitration to be conducted in accordance with the provisions of the Indian Arbitration

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5 CARAP 239.24.doc

Dusane

and Conciliation Act, 1996, as amended. The arbitration panel shall consist of a sole arbitrator to be appointed by the Company. The arbitration proceedings shall be held in Mumbai and shall be conducted in the English language. The award rendered by the arbitration panel shall be final, conclusive and binding on all parties to this agreement and shall be subject to enforcement in any court of competent jurisdiction. Each party shall bear the cost of preparing and presenting its case, and the cost of arbitration, including fees and expenses of the arbitrator, shall be shared equally by the disputing parties, unless the award otherwise provides."

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Learned counsel for the Applicant submits that certain disputes have

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arisen between the parties and that a notice invoking arbitration was issued. The said notice was responded to by the Respondent on 26^th September 2022. However, no compliance has been made pursuant thereto. Consequently, the disputes remain unresolved, and the present application has been filed under Section 11 of the Arbitration and Conciliation Act for the appointment of an arbitrator.

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The Respondents have been served through private service at the address mentioned in the agreement. The notice invoking arbitration was also issued to the same address. A reply to the said notice was received from the learned Advocate appearing for the Respondent, wherein the very same address is reflected. Further, the postal tracking report evidences that the notice was duly served at the said address. In view of above, this Court

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considers the service of notice to be valid and sufficient. In view of the

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same, this Court would pass the following order :-

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O R D E R

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(A) Ms . Dhruti Kapadia , learned Advocate of this Court is appointed as

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the sole Arbitrator to adjudicate upon the disputes and differences between the parties arising out of and in connection with the Agreement referred to above. The contact details of the Arbitrator are as under :-

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Address : 513, Prospect Chambers, Dr. D.N. Road, Opp. Petit Library, Fort, Mumbai – 400 001 Mobile No. : 97570 95290 Email ID : [email protected]

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(B) A copy of this order be communicated to the learned sole Arbitrator by

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the Advocates for the Applicant within a period of one week from the date of uploading 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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(D) 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 Applicant so as to enable them to file the same in the 3/4

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5 CARAP 239.24.doc Dusane

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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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(E) The parties shall appear before the learned sole Arbitrator on such date and at such place as indicated by her, to obtain appropriate direction 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, if any, 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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(F) 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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All issues on merits are expressly kept open to be agitated before the Arbitral Tribunal appointed as above.

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With the above directions, Arbitration Application stands disposed of accordingly.

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[ ARUN R. PEDNEKER, J. ]

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Dusane

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

Case brief

What is this about?

What did the court decide?

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

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

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