Gagan Industries Vs Yfc Projects Pvt. Ltd. — Arbitration | Punjab & Haryana HC (2025)

Gagan Industries Vs Yfc Projects Pvt. Ltd. — Arbitration | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

Appointment of Mr. Subhash Goyal, District & Sessions Judge (Retd.), as Sole Arbitrator to adjudicate the dispute, subject to statutory compliance including Section 12 of the 1996 Act; parties directed to appear before the Arbitrator on 01.10.2025 at 10:00 AM; arbitrator's fee per the Fourth Schedule of the 1996 Act as amended; proceedings to be completed per the time limit under Section 29-A; request letter along with copy of the order to be sent to the arbitrator.

Issue for consideration

Whether the conditions to invoke the power under Section 11(6) of the 1996 Act stand satisfied so as to appoint a sole arbitrator to adjudicate the dispute between the parties arising out of the purchase order dated 03.06.2024. +1 more

Court's answer

The conditions for invoking power under Section 11(6) of the 1996 Act stand satisfied, and the Court accordingly appoints a Sole Arbitrator to adjudicate the dispute between the parties.

Ratio / Principle

Since the prayer is confined to appointment of an arbitrator who will ultimately adjudicate the rights and liabilities of the parties, the matter cannot be kept pending indefinitely for a respondent who has opted to abstain, and the Court decides the application on the basis of the available record.

Key takeaways

Mr. Subhash Goyal, District & Sessions Judge (Retd.), is appointed as Sole Arbitrator, subject to compliance with statutory requirements, and he is requested to comply with the mandate of Section 12 of the 1996 Act before proceeding further.ratio¶¶19
The parties remain at liberty to raise all claims, defences, counter claims and pleas before the Arbitrator, and any observation made by this Court will not bind the learned Arbitrator.obiter¶¶23

Detailed headnote1 paragraphs

Punjab and Haryana High Court at Chandigarh (Jagmohan Bansal J, oral decision dated 17.09.2025) allowed an application by Gagan Industries under Section 11 of the Arbitration and Conciliation Act, 1996 against YFC Projects Private Limited. The applicant, issued purchase order dated 03.06.2024 containing an arbitration clause, had served notice seeking reference of its dispute to an Arbitral Tribunal, but the respondent did not respond and abstained from the Court proceedings (no representation on 12.08.2025 or thereafter). Holding that the matter could not be kept pending indefinitely when the prayer was confined to appointment of an arbitrator who would ultimately adjudicate the parties' rights and liabilities, the Court decided the application on the available record, found the Section 11(6) conditions satisfied, and appointed Mr. Subhash Goyal, District & Sessions Judge (Retd.), Gurugram, as Sole Arbitrator subject to compliance with Section 12. First appearance was fixed for 01.10.2025 at 10:00 AM; fees were made payable per the Fourth Schedule of the 1996 Act as amended; completion was required within the Section 29-A time limit; and all claims/defences/counter claims were left open, with the Court's observations declared non-binding on the Arbitrator.

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ARB-224-2025

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

257 ARB-224-2025 Date of Decision: 17.09.2025

Gagan Industries …Applicant

Versus

YFC Projects Private Limited …Respondent

CORAM: HON'BLE MR. JUSTICE JAGMOHAN BANSAL

Present: - Mr. Soeb Khan, Advocate for Mr. Kanwar Abhay Singh, Advocate for the applicant

None for the respondents

JAGMOHAN BANSAL, J . (Oral)

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

As per office report, respondent stands served. On 12.08.2025, there was no representation of the respondent and in the interest of justice, the matter was adjourned. Even today, there is no change in the situation. It appears that respondent has opted to abstain from joining the proceedings before this Court. The matter cannot be kept pending for an indefinite period especially when the prayer in the application is confined to appointment of an Arbitrator who ultimately would adjudicate rights and liabilities of the parties. Thus, this Court is left with no other option except to adjudicate the case on the basis of available record.

The applicant was issued purchase order dated 03.06.2024 by the respondent. A dispute erupted between the parties. There is an arbitration clause in purchase order. The applicant served notice upon the respondent MOHIT KUMAR 2025.09.17 15:57 I attest to the accuracy andauthenticity of thisseeking resolution of dispute through Arbitral Tribunal but to no avail. order/judgment.

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ARB-224-2025

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. Subhash Goyal, District & Sessions Judge (Retd.), residing at House No. 4254-A, Sector 23-A, Gurugram, Mobile No. 8813888900 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 01.10.2025 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.

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. Subhash Goyal.

(JAGMOHAN BANSAL) JUDGE

17.09.2025

Mohit Kumar

Whether speaking/reasoned	Yes/No
Whether reportable	Yes/No

MOHIT KUMAR 2025.09.17 15:57 I attest to the accuracy and authenticity of this order/judgment.