Parshwa Distributors v. Loreal India Private Limited
Case brief
What is this about?
Substitution of a three-member Arbitral Tribunal under Section 14(1)(a) of the Arbitration and Conciliation Act, 1996 on the claimant's inability to pay arbitrators' fees; Section 11 petition converted to and treated as a Section 14 application; consensual appointment of former Supreme Court Judge H.L. Gokhale as Sole Arbitrator (consent limited to the arbitrator's name, Respondent reserving non-agreement to the substitution concept); Tribunal fee of Rs.1,00,000/- per two-hour session per Arbitrator and Rs.3,00,000/- initial deposits weighed against the Applicant's claim of Rs.94,00,000/-; Bombay High Court, Ordinary Original Civil Jurisdiction; Commercial Arbitration Application No. 82 of 2025; disposed on 8 January 2026.
What did the court decide?
Substitution of the three-member Arbitral Tribunal under Section 14(1)(a) and appointment of Mr. H.L. Gokhale, Former Judge, Supreme Court of India, as Sole Arbitrator (parties having agreed on his name at the Court's suggestion) to adjudicate the disputes arising out of the Distribution Agreement; copy of the order to be communicated to the arbitrator within one week; statutory disclosure under Section 11(8) read with Section 12(1) within two weeks; arbitrator fees per the Bombay High Court (Fee Payable to Arbitrators) Rules, 2018 borne equally by the parties subject to the final award; all rights and contentions expressly kept open.