Airplaza Retail Holdings Pvt. Ltd. Vs B R Darshan and… — Arbitration | Punjab & Haryana HC (2025)

Airplaza Retail Holdings Pvt. Ltd. Vs B R Darshan and… — Arbitration | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

Appointment of Mr. Justice Rameshwar Singh Malik, retired Judge of this Court, as Sole Arbitrator; the arbitrator to first comply with the Section 12 mandate; parties to appear before the arbitrator at the first instance on 10.06.2025 at 10:00 AM; arbitrator's fee payable in accordance with the Fourth Schedule of the 1996 Act; proceedings to be completed within the time limit under Section 29-A; all claims/defences/counter-claims left open to the parties before the arbitrator.

Issue for consideration

Whether an arbitrator ought to be appointed on the applicant's application under Section 11(6) of the Arbitration and Conciliation Act, 1996. +2 more

Court's answer

It was the respondent who, at the first instance, invoked the arbitration clause by notice dated 29.07.2024 and proposed appointment of an arbitrator at Bangalore.

Ratio / Principle

The courts at Bangalore lack jurisdiction over the arbitration agreement in question, which is why the parties are before this Court.

Key takeaways

By its notice dated 29.07.2024 the respondent candidly accepted execution of the arbitration agreement and cannot wriggle out of it, at least in this litigation where the limited question of appointment of an arbitrator is under consideration.ratio¶5
The conditions for invoking the power conferred by Section 11(6) of the 1996 Act stand satisfied, and the Court accordingly appointed a sole arbitrator to adjudicate the dispute.ratio¶6
Mr. Justice Rameshwar Singh Malik, a retired Judge of this Court, is appointed as Sole Arbitrator, subject to compliance of statutory requirements.

Detailed headnote1 paragraphs

Arbitration – Appointment of arbitrator – Section 11(6), Arbitration and Conciliation Act, 1996 – Applicant (Airplaza Retail Holdings Private Limited) sought appointment of an arbitrator relying on an arbitration agreement dated 03.10.2019; the respondents contended that no arbitration agreement existed. The Court observed that it was in fact the respondent which, by notice dated 29.07.2024, had at the first instance invoked the arbitration clause and proposed an arbitrator at Bangalore, thereby candidly accepting execution of the arbitration agreement and foreclosing denial of it in a Section 11 proceeding; the courts at Bangalore lacked jurisdiction over the arbitration agreement. Finding the conditions for invoking Section 11(6) satisfied, the Court appointed Mr. Justice Rameshwar Singh Malik, retired Judge of the Court, as Sole Arbitrator, subject to statutory requirements, including compliance with the Section 12 disclosure mandate; parties to appear before the arbitrator on 10.06.2025; fee per the Fourth Schedule of the 1996 Act; completion of proceedings within the Section 29-A time limit; parties free to urge all claims, defences and counter-claims before the arbitrator, observations in the order not binding on him.

ARB-136-2025

-1-

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

263 ARB-136-2025 Date of Decision: 26.05.2025

Airplaza Retail Holdings Private Limited …Applicant

Versus

B.R. Darshan and others …Respondents

CORAM: HON'BLE MR. JUSTICE JAGMOHAN BANSAL

Present: - Mr. Ashim Aggarwal, Advocate and Mr. Gautam Goyal, Advocate for the applicant

Mr. Viren Sibal, Advocate and Mr. Satyam Sharda, Advocate for the respondents ***

JAGMOHAN BANSAL, J . (Oral)

Through instant application under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short ‘ 1996 Act ’), the applicant is seeking appointment of an Arbitrator.

The parties entered into arbitration agreement dated 03.10.2019 (Annexure P-1). A dispute erupted between the parties. The applicant served notice upon the respondent seeking resolution of dispute through Arbitral Tribunal but to no avail.

Learned counsel for the respondents submits that there was no arbitration agreement, thus, this Court should not invoke its jurisdiction under Section 11(6) of 1996 Act.

MOHIT KUMAR 2025.05.26 17:08 I attest to the accuracy and integrity of this order/judgement.

ARB-136-2025

-2-

From the perusal of notice dated 29.07.2024 served by the respondent upon the applicant, it is evident that it was the respondent who at the first instance invoked arbitration clause and proposed appointment of Arbitrator at Bangalore. The Courts at Bangalore lack jurisdiction over arbitration agreement in question, thus, parties are before this Court.

By notice dated 29.07.2024, the respondent has candidly accepted execution of arbitration agreement and cannot wriggle out of it at least in this litigation where limited question of appointment of Arbitrator is under consideration.

Conditions to invoke power conferred by Section 11(6) of 1996 Act stand satisfied, thus, I hereby appoint a Sole Arbitrator to adjudicate the dispute between the parties.

Mr. Justice Rameshwar Singh Malik, Retired Judge of this Court, residing at B-13, Mayflair Gardens, Hauz Khas, August Kranti Marg, New Delhi, Mobile No.7837049206 is hereby appointed as a Sole Arbitrator to adjudicate the dispute between the parties, subject to compliance of statutory requirements. The learned Arbitrator is requested to comply with mandate of Section 12 of 1996 Act before proceeding further.

The parties at the first instance will appear before the Arbitrator on 10.06.2025 at 10:00 AM and thereafter, as directed by learned Arbitrator.

The Arbitrator shall be paid fee in accordance with the Fourth Schedule of the 1996 Act, as amended.

MOHIT KUMAR 2025.05.26 17:08 I attest to the accuracy and integrity of this order/judgement.

ARB-136-2025

-3-

The Arbitrator is requested to complete the proceedings as per time limit specified under Section 29-A of the 1996 Act.

Needless to mention, parties would be at liberty to raise all the claims/defences/counter claims/pleas before the Arbitrator. Any observation made hereinabove will not be binding on the learned Arbitrator.

A request letter along with copy of this order be sent to Mr. Justice Rameshwar Singh Malik.

26.05.2025

Mohit Kumar

	(JAGMOHAN BANSAL) JUDGE
Whether speaking/reasoned	Yes/No
Whether reportable	Yes/No

MOHIT KUMAR 2025.05.26 17:08 I attest to the accuracy and integrity of this order/judgement.