Axis Finance Limited Vs Amit Mahla & Ors. — Arbitration | Delhi HC (2025)

Axis Finance Limited Vs Amit Mahla & Ors. — Arbitration | Delhi HC (2025)

What the court decided

AI extract

Outcome

Petition under Section 11(6) A&C Act allowed: Ms. Mansi Sharma, Advocate appointed Sole Arbitrator; arbitration under DIAC aegis; remuneration per Fourth Schedule; Section 12 declaration required; parties to approach the arbitrator on 07.03.2025; all rights and contentions left open; petition disposed of.

Issue for consideration

Whether there exists a valid and subsisting arbitration agreement between the parties within the territorial jurisdiction of this Court. +1 more

Court's answer

There is a valid and subsisting arbitration agreement between the parties, within the territorial jurisdiction of this Court.

Ratio / Principle

Despite notice and service through email (and speed-post per counsel), no one appeared on behalf of the respondents, permitting the Court to proceed in their absence in line with precedent.

Key takeaways

The disputes stated to have arisen between the parties do not appear ex facie to be non-arbitrable.ratio¶23
Ms. Mansi Sharma, Advocate is appointed as Sole Arbitrator; the arbitration is to be held under the aegis of the Delhi International Arbitration Centre (DIAC), with remuneration per the Fourth Schedule of the A&C Act and a Section 12 declaration prior to entering the reference; parties to approach the arbitrator on 07.03.2025.ratio¶24
All rights and contentions of the parties, including arbitrability/maintainability of any claim, preliminary objections, and claims on merits, are left open for adjudication by the Sole Arbitrator.

Detailed headnote1 paragraphs

Delhi High Court (Anish Dayal, J.) allowed a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 filed by Axis Finance Limited against Amit Mahla & Ors. arising out of a Facility Agreement dated 4th May 2022 containing arbitration Clause 35 (seat and exclusive jurisdiction Delhi/Mumbai). Though served by email and speed-post, no respondent appeared; relying on Fugro Survey (2012) 10 SCC 752, Suprema Inc. (2015) 13 SCC 122, Energy Efficient Services Ltd. 2023 SCC OnLine Del 2365 and Aditya Birla Finance Ltd. 2024 SCC OnLine Del 2568, the Court proceeded ex parte, found a valid and subsisting arbitration agreement within its territorial jurisdiction, held the disputes not ex facie non-arbitrable, and appointed Ms. Mansi Sharma, Advocate as Sole Arbitrator under the aegis of DIAC, with remuneration per the Fourth Schedule and a Section 12 declaration; all rights and contentions, including arbitrability and maintainability, were left open; parties to appear before the arbitrator on 07.03.2025. The invocation notice dated 08.10.2024 had demanded Rs. 30 lakhs along with interest. Petition disposed of.

$~5

IN THE HIGH COURT OF DELHI AT NEW DELHI

- ARB.P. 2033/2024

AXIS FINANCE LIMITED .....Petitioner

Through: Mr. Vivek Malik and Mr. Vivek Sinaha, Advs.

versus

AMIT MAHLA & ORS. .....Respondents

Through:

CORAM: HON'BLE MR. JUSTICE ANISH DAYAL

O R D E R % 21.02.2025

Pursuant to notice issued, no one appears on behalf of respondents. The service report by the Registry states that the respondents were served through email. Affidavit of service filed by the petitioner states that the service has been done by email and has not bounced back.

Counsel for the petitioner states that respondents have also served through speed-post.

This is a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (‘ A&C Act ’) seeking appointment of the Sole Arbitrator arising out of the Facility Agreement dated 4^th May 2022. Since there were disputes, the petitioner invoked arbitration on 8^th October 2024.

It is stated that the arbitration clause is contained in Clause 35 of the said agreement. The arbitration clause reads as under:

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 30/06/2025 at 23:38:47

In addition, the Arbitration Clause 35 specified that the seat for Arbitration shall be in Delhi/Mumbai and the jurisdiction of the competent Courts will be in Delhi/Mumbai , exclusively.

Counsel for the petitioner points out that the agreement in question was executed in Delhi as evident from the locations specified.

As per the invocation notice dated 08^th October 2024, a demand of Rs.30 Lacs along with interest has been made which has now ballooned up to a greater amount with passage of time, as per the counsel for the petitioner.

The Supreme Court in Fugro Survey (India) (P) Ltd. v. Ramunia International Services Ltd. (2012) 10 SCC 752 and Suprema Inc. v. 4G Identity Solutions (P) Ltd. (2015) 13 SCC 122, and this Court in, Energy Efficient Services Ltd. v. Merry Gold Enterprises 2023 SCC OnLine Del 2365

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 30/06/2025 at 23:38:47

and Aditya Birla Finance Ltd. v. Anjali Nag 2024 SCC OnLine Del 2568, in similar situations, where the respondents did not appear before the Courts despite issuance of notice and service being affected upon them , proceeded exparte against such respondents and appointed the arbitrator.

Upon a conspectus of the averments contained in the petition and the submissions made, this Court is of the opinion that there is a valid and subsisting arbitration agreement between the parties, within the territorial jurisdiction of this Court, the disputes stated to have arisen between the parties do not appear ex facie to be non-arbitrable. 10. Considering the aforesaid, the petition is allowed. The following directions are issued:

i) Ms. Mansi Sharma, Advocate (Mob. No. 9910201722) is appointed as a Sole Arbitrator to adjudicate the disputes between the parties.

ii) The arbitration will be held under the aegis of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi (‘ DIAC ’). The remuneration of the learned Arbitrator shall be in terms of the Fourth Schedule of the A&C Act.

iii) The Sole Arbitrator is requested to furnish a declaration in terms of Section 12 of the A&C Act prior to entering into the reference.

iv) It is made clear that all the rights and contentions of the parties, including the arbitrability/maintainability of any of the claim, any other preliminary objection, as well as claims on merits of the dispute by either of the parties are left open

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 30/06/2025 at 23:38:47

for adjudication by the Sole Arbitrator.

v) The parties shall approach the Sole Arbitrator on 07^th March 2025.

The petition is disposed of.

Order be uploaded on the website of this Court.

ANISH DAYAL, J

FEBRUARY 21, 2025/MK/tk/bp

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 30/06/2025 at 23:38:47