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Revoltution Labs Private Limited & Anr. v. Sammaan Capital Limited

Delhi HC1 Dec 2025ARB.P./1636/2025

Case brief

AI extract

What is this about?

Section 11(6) Arbitration and Conciliation Act 1996; unilateral appointment of sole arbitrator; absence of Section 21 notice; loan agreement arbitration clause Article 11; IHFL; Sammaan Capital Limited; Revoltution Labs Private Limited; equitable mortgage; consent appointment of arbitrator; DIAC Delhi International Arbitration Centre; Beenashaw N. Soni; Section 12 declaration; Delhi High Court ARB.P.; stay of arbitral proceedings.

What did the court decide?

Appointment of Ms. Beenashaw N. Soni as Sole Arbitrator; arbitral proceedings under the aegis of DIAC; remuneration per DIAC Rules, 2018; declaration under Section 12 before entering reference; parties to approach the Arbitrator within two weeks; all rights and contentions left open. ¶39

Revoltution Labs Private Limited & Anr. Vs Sammaan Capital Limited — Arbitration | Delhi HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether a Sole 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 Loan Agreement, the grievance being the respondent's unilateral appointment of an arbitrator without notice under Section 21 of the Act.

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Court's answer

The dispute between the parties under the Agreement is referred to the Arbitral Tribunal comprising a Sole Arbitrator.

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Ratio / Principle

Ms. Beenashaw N. Soni is appointed as Sole Arbitrator to adjudicate the disputes between the parties.

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Key takeaways

The arbitral proceedings shall be held under the aegis of the Delhi International Arbitration Centre (DIAC), Delhi High Court, Sher Shah Road, New Delhi.ratio¶31
The remuneration of the Arbitrator shall be in terms of the DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018.ratio¶32
The Arbitrator is requested to furnish a declaration in terms of Section 12 of the Act prior to entering into the reference; if any impediment arises on that count, the parties may file an appropriate application before this Court.

Detailed headnote1 paragraphs

Arbitration petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of a Sole Arbitrator for disputes arising out of a Loan Agreement under which the petitioners availed a loan facility of Rs. 5,02,80,900/- from the respondent, secured by equitable mortgage. The Agreement contained an arbitration clause (Article 11) providing for unilateral appointment of an arbitrator by IHFL with Delhi as the seat. Alleging that the respondent unilaterally appointed a Sole Arbitrator without serving any notice invoking arbitration under Section 21 of the Act, and that the petitioners received notice dated 18.08.2025 from such arbitrator, the petitioners approached the Court. By order dated 14.10.2025, notice was issued and proceedings before the Sole Arbitrator were stayed. Counsel for the respondent thereafter submitted that the respondent had no objection to an Arbitrator being appointed by the Court under the aegis of DIAC, to which counsel for the petitioners agreed. The Court referred the dispute to a Sole Arbitrator, appointed Ms. Beenashaw N. Soni, directed that proceedings be held under the aegis of DIAC with remuneration per the DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018, required a Section 12 declaration before entering the reference, and directed the parties to approach the Arbitrator within two weeks. All rights and contentions, including arbitrability and preliminary objections, were left open. Petition disposed of; no expression on merits.

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$~3

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- ARB.P. 1636/2025 & I.A. 25035/2025

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REVOLTUTION LABS PRIVATE LIMITED & ANR. .....Petitioners

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Through: Mr. Aditya Sharma, Ms. Mehak Khanna, Mr. Manoj Rajpoor and Mr. Dushyant Sharma, Advocates Mr. Mayank Mahajan, Mr. Varun Tyagi, Ms. Aditi Gupta Mahajan and Mr. Akshay Sharma, Advocates

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versus

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SAMMAAN CAPITAL LIMITED .....Respondent Through:

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CORAM: HON'BLE MR. JUSTICE AMIT BANSAL

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O R D E R % 01.12.2025

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The petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, (hereinafter 'Act') seeking appointment of a Sole Arbitrator for the adjudication of the disputes between the parties arising out of a Loan Agreement (hereinafter ‘Agreement’).

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In terms of the aforesaid Agreement, the petitioners availed a loan facility of Rs. 5,02,80,900/- from the respondent company against a security in the form of an equitable mortgaged property.

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Counsel for the petitioners states that the aforesaid Agreement contains an arbitration clause, i.e. Article 11, which provides for unilateral appointment of arbitrator by IHFL for adjudication of any disputes arising between the parties through arbitration. The arbitration clause provides for

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ARB.P. 1636/2025

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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 03/12/2025 at 11:34:59

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Delhi as the seat of arbitration. The said clause is set out below:

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“ARTICLE 11: ARBITRATION

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That the Borrower and IHFL agree that agreement shall be construed in accordance with the laws in force in India and in the event that any dispute or difference should arise on any matter relating to or arising out of the present agreement the same shall be referred to the Sole Arbitration of an arbitrator to be appointed by the IHFL whose decision shall be final and binding upon the parties. The sole Arbitrator shall conduct the arbitration proceedings at New Delhi/Delhi. It is also mutually agreed between the parties 23 that IHFL would be entitled to invoke the present arbitration agreement even after IHFL would have recalled the Loan/ terminated the contract for any reason whatsoever. It is also agreed between the parties that arbitration proceedings would be conducted in English and in no other language.”

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Since there were disputes between the parties, the respondent unilaterally appointed a Sole Arbitrator for the adjudication of disputes between the parties without serving any notice upon the petitioners under Section 21 of the Act.

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It is stated that the petitioners received a notice dated 18^th August 2025 from the aforesaid Sole Arbitrator appointed by the respondent for participation in the arbitration proceedings to be conducted before the said arbitrator.

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In these circumstances, the petitioners have been constrained to approach this Court by way of the present petition. 7. The grievance of the petitioners is with regard to the unilateral appointment of Arbitrator by the respondent without serving any notice invoking arbitration under Section 21 of the Act upon the petitioners.

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While issuing notice on 14^th October, 2025, this Court had stayed the

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ARB.P. 1636/2025

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proceedings before the Sole Arbitrator.

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Counsel appears on behalf of the respondent and submits that the respondent would now have no objection if an Arbitrator is appointed by this Court and the same shall be conducted under the aegis of DIAC.

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Counsel for the petitioners is agreeable for the same.

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Accordingly, the dispute between the parties under the Agreement is referred to the Arbitral Tribunal comprising a Sole Arbitrator. The following directions are issued in this regard:

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a. Ms. Beenashaw N. Soni (Mobile No.: +91-9810046611) is appointed as a Sole Arbitrator to adjudicate the disputes between the parties.

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b. The arbitral proceedings shall be held under the aegis of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi (hereinafter ‘ DIAC ’).

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c. The remuneration of the Arbitrator shall be in terms of DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018.

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d. The Arbitrator is requested to furnish a declaration in terms of Section 12 of the Act prior to entering into the reference. In the event there is any impediment to the Arbitrator’s appointment on that count, the parties are given liberty to file an appropriate application before this Court.

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e. The parties shall approach the Arbitrator within two (2) weeks from today.

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It is made clear that all the rights and contentions of the parties, including the arbitrability of any of the claims and/ or counter claims, any other preliminary objections as well as claims on merits of the dispute of either of the parties, are left open for adjudication by the Arbitrator.

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ARB.P. 1636/2025

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