Elephant Energy Private Limited Vs Chanderpur Works Private Limited — Arbitration | Delhi HC (2025)

Elephant Energy Private Limited Vs Chanderpur Works Private Limited — Arbitration | Delhi HC (2025)

What the court decided

AI extract

Outcome

Appointment of Ms. Justice Shalinder Kaur, former Judge of the High Court of Delhi, as Sole Arbitrator under Section 11(6) of the 1996 Act; proceedings under the aegis of DIAC and per its Rules; Arbitrator's fee per DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018; disclosure under Section 12 required before entering upon reference; Respondent permitted to file counter-claims; merits expressly left untouched.

Issue for consideration

Whether an Arbitrator should be appointed under Section 11(6) of the Arbitration and Conciliation Act, 1996 to adjudicate the disputes between the parties arising out of the Purchase Agreement dated 19.05.2022, given that the existence of the arbitration agreement is not disputed.

Court's answer

Since the existence of the arbitration agreement is not disputed, and determining its existence is the limited remit of the referral Court under Section 11 of the 1996 Act, the Court finds no impediment in appointing the Arbitrator, in light of the Supreme Court's judgment in SBI General Insurance Company Limited v. Krish Spinning, 2024 SCC OnLine SC 1754.

Ratio / Principle

The petition is allowed, appointing Ms. Justice Shalinder Kaur, former Judge of this Court, as Sole Arbitrator; arbitration proceedings will be held under the aegis of Delhi International Arbitration Centre (DIAC) and as per its Rules, with the Arbitrator's fee as per the DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018.

Key takeaways

The Court has not expressed any opinion on the merits of the case; all rights and contentions of the respective parties are left open, and it will be open to the Respondent to file counter-claims before the learned Arbitrator.ratio¶21

Detailed headnote1 paragraphs

Section 11(6), Arbitration and Conciliation Act, 1996 — appointment of Sole Arbitrator. Disputes under a Purchase Agreement dated 19.05.2022 (machineries/gasifier, Rs. 3,39,13,200/-, arbitration clause 14) were invoked by arbitration notice dated 08.07.2025; the Respondent's reply of 11.08.2025 did not dispute the arbitration agreement. Counsel for the Respondent conceded the existence of the arbitration clause while contesting the claims on merits and sought liberty for counter-claims. Since the existence of the arbitration agreement stood undisputed — the limited remit of the referral Court under Section 11 — and relying on SBI General Insurance Company Limited v. Krish Spinning, 2024 SCC OnLine SC 1754, the High Court found no impediment and appointed Ms. Justice Shalinder Kaur, former Judge of the High Court of Delhi, as Sole Arbitrator, with proceedings under the aegis of DIAC and fees per DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018; disclosure under Section 12 was directed. The Court expressed no opinion on the merits, left all rights and contentions open, and permitted the Respondent to file counter-claims; the petition was disposed of.

$~18

IN THE HIGH COURT OF DELHI AT NEW DELHI

- ARB.P. 1554/2025

ELEPHANT ENERGY PRIVATE LIMITED .....Petitioner Through: Mr. Sanjeev Mahajan, Mr. Sarthak Chiller and Mr. Rohit Lochav, Advocates with Mr. Sagar Kanojiya, AR.

versus

CHANDERPUR WORKS PRIVATE LIMITED .....Respondent Through: Mr. Yogendra Aldak and Ms. Tamanna Sharma, Advocates.

CORAM:

HON'BLE MS. JUSTICE JYOTI SINGH

O R D E R

% 08.10.2025

This petition is filed on behalf of the Petitioner under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (‘1996 Act’) for appointment of an Arbitrator to adjudicate the disputes between the parties.

Disputes having arisen between the parties in relation to Purchase Agreement dated 19.05.2022 for purchase of machineries / gasifier for a sum of Rs.3,39,13,200/-, Petitioner sent notice invoking arbitration dated 08.07.2025 to the Respondent in consonance with arbitration clause 14 in the Purchase Agreement. Notice was duly received by the Respondent and reply was sent on 11.08.2025 wherein, according to the counsel for the Petitioner, existence of arbitration agreement was not disputed and in fact Respondent stated that it had some counter-claims.

Learned counsel for the Respondent fairly and candidly does not

ARB.P. 1554/2025

Page 1 of 2

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/10/2025 at 11:50:24

dispute the existence of arbitration clause albeit claims of the Petitioner are refuted on merits. It is submitted that if the Court is inclined to appoint the Arbitrator, liberty be granted to the Respondent to prefer counter-claims before the Arbitrator.

Since the existence of the arbitration agreement is not disputed, which is the limited remit of the referral Court under Section 11 of 1996 Act, in light of the judgment of the Supreme Court in SBI General Insurance Company Limited v. Krish Spinning, 2024 SCC OnLine SC 1754 , I find no impediment in appointing the Arbitrator.

Accordingly, this petition is allowed appointing Ms. Justice Shalinder Kaur, former Judge of this Court (Mobile No. 9910384702) as the Sole Arbitrator to adjudicate the disputes between the parties. Arbitration proceedings will be held under the aegis of Delhi International Arbitration Centre (DIAC) and as per its Rules. Fee of the Arbitrator shall be as per the DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018.

Learned Arbitrator shall give disclosure under Section 12 of the 1996 Act before entering upon reference.

It is made clear that this Court has not expressed any opinion on the merits of the case and all rights and contentions of the respective parties are left open. It will be open to the Respondent to file counter-claims before the learned Arbitrator.

Petition is disposed of in the aforesaid terms.

JYOTI SINGH, J

OCTOBER 8, 2025/YA

ARB.P. 1554/2025

Page 2 of 2

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 17/10/2025 at 11:50:24